Agriculture Reference
In-Depth Information
Table 13.1
Future value of $1 (compounded annually)
Year
(1 +
i
)
n
(N)
1 %
3 %
5 %
6 %
7 %
1
1.0100
1.0300
1.0500
1.0600
1.0700
2
1.0201
1.0609
1.1025
1.1236
1.1449
3
1.0303
1.0927
1.1576
1.1910
1.2250
4
1.0406
1.1255
1.2155
1.2625
1.3108
5
1.0510
1.1593
1.2763
1.3382
1.4026
6
1.0615
1.1941
1.3401
1.4185
1.5007
7
1.0721
1.2299
1.4071
1.5036
1.6058
8
1.0829
1.2668
1.4775
1.5938
1.7182
9
1.0937
1.3048
1.5513
1.6895
1.8385
10
1.1046
1.3439
1.5259
1.7908
1.9672
15
1.1610
1.5580
2.0789
2.3966
2.7590
20
1.2202
1.8061
2.6533
3.2071
3.8697
25
1.2824
2.0938
3.3864
4.2919
5.4274
Year
(1 +
i
)
n
(N)
8 %
9 %
10 %
12 %
14 %
1
1.0800
1.0900
1.1000
1.1200
1.1400
2
1.1664
1.1881
1.2100
1.2544
1.2996
3
1.2597
1.2950
1.3310
1.4049
1.4815
4
1.3605
1.4116
1.4641
1.5735
1.6890
5
1.4693
1.5386
1.6105
1.7623
1.9254
6
1.5869
1.6771
1.7716
1.9738
2.1950
7
1.7138
1.8280
1.9487
2.2107
2.5023
8
1.8509
1.9926
2.1436
2.4760
2.8526
9
1.9990
2.1719
2.3579
2.7731
3.2519
10
2.1589
2.3674
2.5937
3.1058
3.7072
15
3.1722
3.6425
4.1772
5.4736
7.1379
20
4.6610
5.6044
6.7275
9.6463
13.7430
25
6.8485
8.6231
10.8340
17.0000
26.4610
Again, to make things simpler, tables of present values (
Table 13.2
)
can be used or one can
use a fi nancial calculator or spreadsheet to quickly calculate the present value of the invest-
ment. In this example, the present value of $1 four years from now at 5 percent is given in
the present value table as 0.8227, so the present value of $1,000 would be:
Present Value
$
1
000
0.
.
8227
$
$
822 7
0
×
=
.
