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Future Value of $1:
The "future value of $1" is a term used to describe how much a deposit of one dollar (or any specified amount) will grow in a certain amount of time. It's like planting a seed and watching it grow into a big tree over time.
FV = PV x (1 + i)^n
For example, let's say you deposit $1 in a savings account that pays 5% interest annually. If you leave that money in the account for 10 years, the future value of that $1 will be $1.63. This means that your money grew by 63 cents, just by leaving it in the account and earning interest.
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To calculate the future value of $1 using an HP12c calculator, you would use the "FV" key, which stands for "future value". Here's an example of how to do it:
Let's say you want to know how much $1 will be worth in 5 years if you invest it at an annual interest rate of 6%. Here are the steps:
Enter the number of years: Press "5" and then the "N" key.
Enter the interest rate: Press "6" and then the "%i" key.
Enter the present value: Press "1" and then the "CHS" key (to make it negative), and then the "PV" key.
Calculate the future value: Press "FV" and the calculator will display the answer.
The answer should be $1.34, which means that if you invest $1 at 6% interest for 5 years, it will grow to $1.34. You can also use this formula to calculate the future value of any amount, not just $1:
FV = PV x (1 + i)^n
where FV is the future value, PV is the present value, I is the interest rate per period, and n is the number of periods.
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The future value of $1, it's quite a thing!
It's like planting a seed and watching it take wing.
You put in a dollar, and let it grow,
And before you know it, it's worth more dough!
Let's say you put it in a savings account,
And leave it there for a certain amount.
If the interest rate is 5%, you'll see,
Your dollar will grow to $1.63, just wait and see!
So remember, the future value of $1,
Is like planting a seed in the financial sun.
It grows and grows, just like a tree,
And helps your money to grow and be free!