Agriculture Reference
In-Depth Information
amount of the stream at some point in the future or to calculate the present value of a future
stream.
There are numerous examples in which the future value of a stream of income is
useful; including the amount needed to save in order to accumulate a suffi cient amount to
retire, the amount needed to save each period to fund a child's education, and the amount
needed to save in order to save enough for a down payment to purchase a house or a business.
The factors for compounding a series of payments for selected interest rates are provided in
Table 13.3
Future value of $1 at compounded interest for an equal series of payments
Year(N)
1%
3%
5%
6%
7%
1
1.0000
1.0000
1.0000
1.0000
1.0000
2
2.0100
2.0300
2.0500
2.0600
2.0700
3
3.0301
3.0909
3.1525
3.1836
3.2149
4
4.0604
4.1836
4.3101
4.3746
4.4399
5
5.1010
5.3091
5.5256
5.6371
5.7507
6
6.1520
6.4684
6.8019
6.9753
7.1533
7
7.2135
7.6625
8.1420
8.3938
8.6540
8
8.2857
8.8923
9.5491
9.8975
10.260
9
9.3685
10.159
11.027
11.491
11.978
10
10.462
11.464
12.578
13.181
13.816
15
16.097
18.599
21.578
23.276
25.129
20
22.019
26.870
33.066
36.785
40.995
25
28.243
36.459
47.726
54.864
63.248
Year(N)
8%
9%
10%
12%
14%
1
1.0000
1.0000
1.0000
1.0000
1.0000
2
2.0800
2.0900
2.1000
2.1200
2.1400
3
3.2464
3.2781
3.3100
3.3744
3.4396
4
4.5061
4.5731
4.6410
4.7793
4.9211
5
5.8666
5.9847
6.1051
6.3528
6.6101
6
7.3359
7.5233
7.7156
8.1152
8.5355
7
8.9229
9.2004
9.4872
10.089
10.730
8
10.637
11.028
11.436
12.300
13.233
9
12.488
13.021
13.579
14.776
16.085
10
14.487
15.193
15.937
17.549
19.337
15
27.152
29.361
31.772
37.280
43.842
20
45.762
51.159
57.274
72.052
91.024
25
73.105
84.699
98.346
133.333
181.867
