Calculating PV and FV using Online Calculators

Using either Excel or an online calculator, solve the following Present Value (PV) and Future Value (FV) problems. The questions are shown below for convenience but you can download this Word document containing questions and write your answers in the spaces provided.

1. If a nurse deposits $25,000 today in a mutual fund that is expected to grow at an annual rate of 8%, what will be the value of the investment:
1. 3 years from now?
2. 6 years from now?
3. 9 years from now?
4. 12 years from now?

If the rate changed to 10%, what would be the value of the investment:

1. 3 years from now?
2. 6 years from now?
3. 9 years from now?
4. 12 years from now?
5. How do the values compare in 12 years with the different interest rates?
1. The chief financial officer of a home health agency needs to determine the present value of a $120,000 investment received at the end of year 5. What is the present value if the discount rate is:
1. 3%?
2. 6%?
3. 9%?
4. 12%?

What is the present value if the investment is received at the end of 7 years?

1. 3%?
2. 6%?
3. 9%?
4. 12%?
1. An obstetrician plans to invest $25,000 per year at the end of each year into a low-risk retirement account. She expects to earn 5% for 35 years. What will her retirement account be worth at the end of those 35 years assuming she invests $25,000 right away (rather than waiting until the end of the year)?