Series 65: 1.4.5.1.1.1. Calculating The Future Value (of A Present Sum)

Taken from our Series 65 Online Guide

1.4.5.1.1.1. Calculating the Future Value (of a Present Sum)

There are two ways to calculate the future value of something that you expect to increase in value at an average rate each year. There’s a formula (which involves a calculator trick) and a rule of thumb, each of which you should know.

The actual formula for calculating the future value of a sum is:

future value = principal × (1 + r)t

In this formula, the “r” stands for the interest rate earned during the period, and the “t” stands for the number of periods over which you will be compounding (growing) the sum. So the formula can be rewritten:

future value = principal × (1 + interest rate)number of periods

Aside from memorizing this formula, though, don’t worry about being able to compute it by hand, since a basic calculator will be provided by the testing center.

On your basic exam calculator, you can determine the future value by using the following procedure. Start by converting the percentage into a deci

+ Read More

More Series 65 Info

What are people saying?

Create an Account

Since you're reading about Series 65: 1.4.5.1.1.1. Calculating The Future Value (of A Present Sum), you might also be interested in:

Series 79 - Chapter 5 Practice Questions

Series 28 - Three-Year Minimum

Series 22 - 2.2.3. Amortization

Series 63 - 2.1.3. Broker-Dealer Supervision of Agents

Series 24 - Corporate Accounts

Series 24 - Reporting System for FINRA

Please Enable Javascript
to view this content!

Site Login

TESTIMONIALS

What are people saying?

I PASSED. A big thank you to Solomon Exam Prep for breaking down the material for the Series 65 exam into understandable information. I started my exam prep journey with another provider and their material was simply too wordy and full of unnecessary information. I switched to Solomon Exam Prep and the material was easy to follow and I PASSED. Thanks so much for being there for me.

Tammy Gladstone, State Farm Insurance, California, MD

I wanted to add my testimonial to the long list of successful test-takers. Passed my Series 65 today on the first try! The materials were well written and made the concepts easier to understand (especially to someone with no background in finance like myself). I was a big fan of the audio format as I have a long drive back and forth to work (other test prep providers did not have this option). The test simulators were also a huge help. Thanks to the folks at Solomon Prep!

Ralph Marshall, High Speed Alliance, Wilmington DE

I could not be happier with Solomon Exam Prep and I am so glad I found it. I had taken this test prior and wasn't able to pass. After utilizing the Total Study Package for the Series 65, including the book, audiobook, summary videos and practice tests, I felt very confident clicking the submit button at the end of the test. I would highly recommend Solomon Exam Prep to pass your upcoming test.

Dane Urista, Vincent Asset Management, Eden Prairie, MN

I finally passed the Series 65! I’m writing today to send you a very sincere Thank you for all the professional support and emotional guidance you have provided. I was emotionally beat up and almost ready to give in on my endeavor of passing the Series 65 and becoming an Investment Advisor Firm. After becoming unemployed and having a tremendous time focusing on the study material, you provided additional months and material access for no additional Fee! You also mentioned I should be able to teach the material and then I’ll be ready for the exam. By the gracious caring and professional sharing of your wisdom, it provided me to find my path to passing the Series 65! The three items that really helped was to Study like I’m going to teach it, memorizing and learn by over studying, and getting plenty of sleep and rest. Thank you to you, your family, and pro team for all you have done. I am very blessed and humbled to have met you all in this challenging time of my life. Happy Holidays, and Have a Safe and Happy New Year!

Michael Jones. Kansas City, MO

I have used other providers in the past for the 62 and decided to try something new this time due to passing that by a thin margin out of luck. I passed the 65 first try with an 88% all thanks to Solomon Exam Prep and its effective 5-week program. The book is thorough and easy to follow and the endless question bank with detailed explanations ensures that you will never see a repeat and never have to worry about question memorization (which is CRITICAL when you are assessing how ready you are based off of practice tests). The quizzes and exams require a deeper level of understanding, unlike other providers that test you with elementary questions only to leave the actual exam to feel unpleasantly difficult. The practice quizzes provide a very convenient way to focus on your weak areas and the full simulation exams feel very much like the actual test and in my experience, made the real exam seem surprisingly easy. The practice questions also reinforce important test taking skills and taught me to approach questions in a more disciplined way than before. Finally, I gave the “ask the professor” function a try and they are VERY responsive and clearly have a passion for seeing their clients succeed. I couldn’t be happier with this program and even though you might hear about the other test prep companies more often, Solomon IS the most effective.

Bates Parsons, Denver, CO

Love Solomon, I tried other companies and the ones I used didn't prepare me. Solomon teaches you the concepts and the practice tests helped me pass my Series 65, 63, and the 6 on my first try. I've had no less than four of my friends use Solomon and they have all had similar success. Work hard with the correct study material and you will have success.

Gerald Barnes, Client One, Peoria, AZ