Future value and percent value?

1.)Percent value=5,000. Annual rate of interest=5%. Term of investment=3 years. Compound frequency= semi. Future value=?? What is the future value and how did you figure this out?

2.) Percent value=? Annual rate=10. Term of investment=2 yrs. Compound frequency=Qtrly. Future value=$62,500. Find the percent value.

1) 5000 *((1+(.05/2)^(3*2))

5000*(1.025^6)=5798.47

2) 62500/(1+(.10/4)^(2*4)

62500/((1.025)^8)=51,296.66

I believe you mean "present value" instead of "percent value". If that's the case, then the answers are (1) $5,798.47 and (2) $51,296.66, calculated as follows:

1) using a financial calculator, enter PV=5,000, i=5%/2, n=6, and pmt=0. Solve for FV.
2) using a financial calculator, enter i=10%/4, n=8, FV=62,500, and pmt=0. Solve for PV.

Note that in (1), n=6 because of semi-annual compounding for 3 years, and in (2), n=8 because of quarterly compounding for 2 years. Hope that helps.

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