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Finance:
FVN= PV(1+I)N=$1(1+0.050)3.0=$1.16
1. What is the future value of $1 in Period 4 when the interest rate is 5%?
$1.00
$1.16
$1.22
$1.63
2. If the interest rate were 10%, how many periods would it take for the future value to be worth
$1.95?
3 periods
5 periods
6 periods
7 periods
3. Consider the future value of $1 in 10 periods when the interest rate is 5%. When the interest
rate doubles to 10%, the future value:
Increases but by less than double
Exactly doubles
Increases by more than double
Cannot be determined

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