3-6 Future values FV=$100×(1+r) Example- FV What is the future value of $100 if interest is compounded annually at a rate of 6%0 for five years? FV=$100×(1+.06)=$133.82 Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 3- 6 Irwin/McGraw-Hill Future Values FV r t = $100  (1+ ) Example - FV What is the future value of $100 if interest is compounded annually at a rate of 6% for five years? $100 (1 .06) $133.82 5 FV =  + =