how do you solve a finance problem without using the TVM Solver?

Question

what are the formulas?

for example how do you solve:
given a deposit of 12000$ invested at 4.9% interest, find the future value after 4 years compounded monthly

without TVM solver on the calc

thanks

Answer 1

Well, you can look up the formula or
FV = PV * (1+i)^n
The above calculates the future value, (FV), of an investment, (PV), accruing at a fixed interest rate of i for n periods.
http://en.wikipedia.org/wiki/Compound_interest#Simple_Formulae
where PV=12000, n=48 periods, and i=4.9%/12 interest per period.

You can calculate it step by step, taking 4.9% and dividing it by 12 to get the monthly interest rate, then multiplying that times the principal ($12,000) to get interest and adding to the principal to get the new principal. Do this for 48 times total to do 4 years.
0.00408333 * 12000 = 49 so 12049 after one month
0.00408333 * 12049 = 49.20 so 12098.20 after two month
rpt.

Answer 2

4.9% converts to ..0040833 per month x 12,000=12,049.00at the end of month one. Take that product x.0040833= product at end of month 2, etc for 46 more times and you will have the sum at the end of 4 years,compounded monthly.