**Future value calculation**   Without referring to the preprogrammed function on your financial

calculator​,

use the basic formula for future value along with the given interest​ rate,

*r*​,

and the number of​ periods,

*n*​,

to calculate the future value  of​ $1 in the case shown in the following table.  **Interest**​ rate,** *r***

**Number of**​ periods,** *n***

77​%

20    The future value of​ $1 is

​$enter your response here.

​(Round to three decimal​ places.)

The future value $FV$ of $1 can be calculated using the formula:

\[
FV = P(1 + r)^n
\]

Where:
- $P$ is the initial amount (in this case, $P = 1$).
- $r$ is the interest rate per period (expressed as a decimal).
- $n$ is the number of periods.

Given:
- $r = 77\%$ or $r = 0.77$,
- $n = 20$ periods,

We can calculate the future value:

\[
FV = 1(1 + 0.77)^{20}
\]

Let me compute this for you.The future value of $1 at an interest rate of 77% over 20 periods is approximately **$91,088.873** (rounded to three decimal places).

Would you like more details or have any questions?

Here are 5 related questions for deeper understanding:
1. How does the future value change if the interest rate decreases?
2. What happens to the future value if the number of periods increases?
3. How does compound interest affect long-term investments?
4. Can you calculate the future value for different initial amounts?
5. What is the difference between simple interest and compound interest?

**Tip**: A higher interest rate or more periods significantly increases the future value due to compound interest effects.

The future value calculation of $1 at an interest rate of 77% over 20 periods.

Learn how to calculate the future value of $1 with a 77% interest rate compounded over 20 periods. This calculation uses the compound interest formula FV = P(1 + r)^n, showing exponential growth in finance. Suitable for high school students in Grades 10-12.

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