## Future Value of Varying Amounts and/or Time Intervals

The future value of multiple amounts is determined by calculating, and then adding together, the future value for each single amount. We illustrate this with Calculations #17 and #18.

### Calculation #17.

You are asked to determine the total future value on December 31, 2022 of a $1,000 deposit made on January 1, 2018 plus a $5,000 deposit made on January 1, 2020. Both amounts will earn 8% per year compounded annually. The timeline for this information is:

The total future value on December 31, 2022 is the sum of these two calculations:

**Future value calculation of the $1,000 deposited on Jan 1, 2018:**

**Future value calculation of the $5,000 deposited on Jan 1, 2020:**

The total future value on December 31, 2022 for these two deposits will be **$7,769**. You can verify the future value of $7,769 with the following table:

### Calculation #18.

You are asked to determine the total future value on December 31, 2022 of a $1,000 deposit made on January 1, 2018 plus a $5,000 deposit made on December 31, 2019. Both amounts will earn 8% per year *compounded quarterly*.

Because the interest is compounded quarterly, we convert the first deposit from 5 years to *20 quarterly periods*, and the second deposit from 3 years to *12 quarterly periods*. We convert the interest rate of 8% per year to the rate of *2% per quarter*.

The following calculations reflect the restatement to quarters. Again, the sum of the answers to these two equations will be the future value on December 31, 2022.

**Future value calculation of the $1,000 deposited on Jan 1, 2018:**

**Future value calculation of the $5,000 deposited on Dec 31, 2019:**

The total future value on December 31, 2022 for these two deposits will be **$7,826**. You can verify the future value of $7,826 with the following table:

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