24.4.1. Future Value (FV)

Try these first

1. 1.

   What is the Future Value of ₹5,000 at an interest rate of 6% after 1 year?

   Hint

   Use the FV formula: FV = PV × (1 + r).

2. 2.

   Calculate the FV of ₹2,000 at 8% after 2 years.

   Hint

   Remember to use the power for the number of years.

3. 3.

   What does Future Value (FV) represent?

   • The current worth of money
   • The potential worth of money in the future
   • The sum of past investments

   Hint

   Think about how money grows over time.

4. 4.

   True or False: The formula for FV only applies to simple interest calculations.

   • True
   • False

   Hint

   Consider how interest accumulates.

5. 5.

   Calculate the Future Value of ₹30,000 invested at 8% compounded annually for 6 years.

   Hint

   This is a compounded interest problem, remember to use the exponent.

6. 6.

   If ₹10,000 is invested at 6% annual interest compounded monthly for 5 years, what is the FV?

   Hint

   Adjust the interest rate accordingly as it compounds monthly.