The fifth group in Table 1-5 covers a set of problems that uniform series of equal investments A occurred at the end of each time period for n number of periods at the compound interest rate of i. In summary P is unknown and A i and n are given parameters. STEP 2 Thus let us substitute the values we have into the formula.
With that we can work out the Future Value FV when we know the Present Value PV the Interest Rate r and Number of Periods n.
A Accrued Amount principal interest P Principal Amount. Suppose you give 100 to a bank which pays you 10 compound interest at the end of every year. The PV formula is PV FV 1ry. 1152 800102n STEP 3 We can then proceed to solve the equation.