Time Value of Money
Future Value Tables
Using Tables to Solve Future Value Problems
Compound interest tables have been calculated by figuring out the (1+I)n values for various time periods and interest rates. Download and review Time Value of Money Table 1: Future Value Factors.
You will notice that this table summarizes the factors for various interest rates for various years. To use the table, simply go down the left-hand column to locate the appropriate number of years. Then go out along the top row until the appropriate interest rate is located. Note there are three pages containing interest rates 1% through 19%.
For instance, to find the future value of $100 at 5% compound interest, look up five years on the table, then go out to 5% interest. At the intersection of these two values, a factor of 1.2763 appears. Multiplying this factor times the beginning value of $100.00 results in $127.63, exactly what was calculated using the Compound Interest Formula previously. Note, however, that there may be slight differences between using the formula and tables due to rounding errors.
An example shows how simple it is to use the tables to calculate future amounts.
You deposit $2000 today at 6% interest. How much will you have in 5 years?