{"id":3317,"date":"2020-07-25T14:31:07","date_gmt":"2020-07-25T13:31:07","guid":{"rendered":"https:\/\/www.nickzom.org\/blog\/?p=3317"},"modified":"2024-03-31T09:09:02","modified_gmt":"2024-03-31T08:09:02","slug":"how-to-calculate-and-solve-for-future-worth-simple-payment-economic-equivalence","status":"publish","type":"post","link":"https:\/\/www.nickzom.org\/blog\/2020\/07\/25\/how-to-calculate-and-solve-for-future-worth-simple-payment-economic-equivalence\/","title":{"rendered":"How to Calculate and Solve for Future Worth | Simple Payment | Economic Equivalence"},"content":{"rendered":"

\"\"<\/p>\n

The image above represents future worth. To calculate future worth, three essential parameters are needed and these parameters are Present Amount or Worth (P), Interest Rate (i) <\/strong>and\u00a0Number of Years (N).<\/strong><\/p>\n

The formula for calculating future worth:<\/p>\n

F = P(1 + i)N<\/sup><\/p>\n

Where:<\/p>\n

F = Compound Amount or Future Worth
\nP = Present Amount or Worth
\ni = Interest Rate
\nN = Number of Years<\/p>\n

Let’s solve an example;
\nFind the future worth when the present worth is 12, the interest rate is 0.2 and the number of years is 10.<\/p>\n

This implies that;<\/p>\n

P = Present Amount or Worth = 12
\ni = Interest Rate = 0.2
\nN = Number of Years = 10<\/p>\n

F = P(1 + i)N<\/sup>
\nF = 12(1 + 0.2)10<\/sup>
\nSo, F = 12(1.2)10<\/sup>
\nF = 12(6.19)
\nF = 74.30<\/p>\n

Therefore, the\u00a0future worth\u00a0<\/strong>is\u00a0\u20a674.30.<\/strong><\/p>\n

Read more:\u00a0How to Calculate and Solve for Present Worth | Simple Payment | Economic Equivalence<\/a><\/p>\n

Calculating the Present Worth when the Future Worth, the Interest Rate and the Number of Years are Given<\/strong><\/h3>\n

P = F \/ (1 + i)N<\/sup><\/p>\n

Where;<\/p>\n

P = Present Amount or Worth
\nF = Compound Amount or Future Worth
\ni = Interest Rate
\nN = Number of Years<\/p>\n

Let’s solve an example;
\nGiven that the future worth is 20, the interest rate is 0.2 and the number of years is 5. Find the present worth?<\/p>\n

This implies that;<\/p>\n

F = Compound Amount or Future Worth = 20
\ni = Interest Rate = 0.2
\nN = Number of Years = 5<\/p>\n

P = F \/ (1 + i)N<\/sup>
\nP =20 \/ (1 + 0.2)5<\/sup>
\nThat is, P = 20 \/ (1.2)5<\/sup>
\nP = 20 \/ 2.48
\nP = 8.064<\/p>\n

Therefore, the\u00a0present worth\u00a0<\/strong>is\u00a0\u20a68.064.<\/strong><\/p>\n

How to Calculate Future Worth | Simple Payment Using Nickzom Calculator<\/strong><\/h3>\n

Nickzom Calculator \u2013\u00a0The Calculator Encyclopedia<\/strong> is capable of calculating the future worth.<\/p>\n

To get the answer and workings of the future worth using the Nickzom Calculator \u2013 The Calculator Encyclopedia.\u00a0<\/strong>First, you need to obtain the app.<\/p>\n

You can get this app via any of these means:<\/p>\n

Web<\/strong>\u00a0\u2013\u00a0https:\/\/www.nickzom.org\/calculator-plus<\/a><\/p>\n

To get access to the\u00a0professional\u00a0<\/strong>version via web, you need to\u00a0register<\/strong>\u00a0and\u00a0subscribe\u00a0<\/strong>for\u00a0NGN 1,500\u00a0<\/strong>per\u00a0annum<\/strong>\u00a0to have utter access to all functionalities.
\nYou can also try the\u00a0demo\u00a0<\/strong>version via\u00a0https:\/\/www.nickzom.org\/calculator<\/a><\/p>\n

Android (Paid)<\/strong>\u00a0\u2013\u00a0https:\/\/play.google.com\/store\/apps\/details?id=org.nickzom.nickzomcalculator<\/a>
\nAndroid (Free)<\/strong>\u00a0\u2013\u00a0https:\/\/play.google.com\/store\/apps\/details?id=com.nickzom.nickzomcalculator<\/a>
\nApple (Paid)<\/strong>\u00a0\u2013\u00a0https:\/\/itunes.apple.com\/us\/app\/nickzom-calculator\/id1331162702?mt=8<\/a>
\nOnce, you have obtained the calculator encyclopedia app, proceed to the\u00a0Calculator Map,\u00a0<\/strong>then click on\u00a0Economics<\/strong>\u00a0<\/b>under\u00a0Engineering<\/strong>.<\/strong><\/p>\n

\"\"<\/p>\n

Now, Click on\u00a0Economic Equivalence\u00a0<\/strong>under\u00a0Economics<\/strong><\/p>\n

\"\"<\/p>\n

Now, Click on Future Worth <\/strong>under\u00a0Economic Equivalence<\/strong><\/p>\n

\"\"<\/p>\n

The screenshot below displays the page or activity to enter your values, to get the answer for the future worth according to the respective parameters which are the Present Amount or Worth (P), Interest Rate (i) <\/strong>and\u00a0Number of Years (N).<\/strong><\/p>\n

\"How<\/p>\n

Now, enter the values appropriately and accordingly for the parameters as required by the Present Amount or Worth (P)<\/strong> is 12<\/strong>,\u00a0Interest Rate (i)\u00a0<\/strong>is 0.2<\/strong>\u00a0<\/strong>and\u00a0Number of Years (N)<\/strong>\u00a0is 10<\/strong>.<\/p>\n

\"\"<\/p>\n

Finally, Click on Calculate<\/p>\n

\"How
\n\"How<\/p>\n

As you can see from the screenshot above,\u00a0Nickzom Calculator<\/strong>\u2013 The Calculator Encyclopedia solves for the future worth and presents the formula, workings and steps too.<\/p>\n","protected":false},"excerpt":{"rendered":"The image above represents future worth. To calculate future worth, three essential parameters are needed and these parameters…","protected":false},"author":5,"featured_media":13660,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_focuskw":"Calculate Future Worth","_yoast_wpseo_title":"","_yoast_wpseo_metadesc":"Master the steps and formula on How to Calculate and Solve for Future Worth | Simple Payment | Economic 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