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  # Present Value / Future Value
  
  Show the formula used in the following questions in detail
  
  1)
  a. What is the future value of \$4,000 invested at 6% for 22 years with annual compounding?
  
  b. What is the future value of \$4,000 invested at 6% for 22 years with monthly compounding?
  
  c. What is the future value of \$4,000 invested at 6% for 22 years with continuous compounding?
  
  d. What is the present value of 1,000,000 pesos due in 14 years with a discount rate = 7% using annual compounding?
  
  e. What is the present value of 1,000,000 peso due in 14 years with a discount rate = 7% using continuous compounding?
  
  #### Solution Preview
  
  1)
  
  a. What is the future value of \$4,000 invested at 6% for 22 years with annual compounding?
  
  The future value can be found using the formula FV = PV X (1+r)^n.
  Here FV is the future value
  PV is the present value
  r is the rate
  n is the time period
  FV = 4,000 X (1+6%)^22 = \$14,414.15
  
  b. What is the future value of \$4,000 invested at 6% ...
  
  #### Solution Summary
  
  The solution explains the calculation of present value and future value
  
  \$2.19