Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The future value of an amount is calculated by using the following formula: Future value of an amount = Present value × ( 1+ Interest rate ) Number of periods To determine: Whether Person B is able to pay for his trip with the accumulated investment amount.

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Chapter 6, Problem 6.2BE

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Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The future value of an amount is calculated by using the following formula:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

To determine: Whether Person B is able to pay for his trip with the accumulated investment amount.

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