| To calculate a future value: Problem: You are a landlord
charging $500 per month, and will invest it in a mutual fund that hopefully
will add 10% interest per year. You want to find the future value of your
cash flow in 3 years.
Solution: To get the answer, calculate the future worth
given the uniform worth of $500 compounded at .8333 % (10% / 12 mos) for
36 months. Input the values, then click on Per Period Compounding. The
answer should be $20,890.78. |