Using an annual interest rate (r=4 %), recompute Table 2.1 for (F V(T)) for a horizon date
Question:
Using an annual interest rate \(r=4 \%\), recompute Table 2.1 for \(F V(T)\) for a horizon date of 6 months, \(T=0.5\). Repeat for a horizon date of \(1 \mathrm{y}\) and 6 months, \(T=1.5\).
Table 2.1
Transcribed Image Text:
Compoundings Per Year (m) 0=Simple 1=Annual 2=Semiannual 4=Quarterly 12=Monthly 365 Daily co=Continuous Number of Periods (N = Tx m) 2 4 8 24 2 365 Periodic Interest Rate (r/m) 4% 2% 1% 4%/12 4%/365 Future Value FV (T) $108,000 $108,160 Interest $8,000 $8,160 $108,243.22 $8,243.22 $108,285.67 $8,285.67 $108,314.30 $8,314.30 $108,328.23 $8,328.23 $108,328.71 $8,328.71
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Related Book For
Mathematical Techniques In Finance An Introduction Wiley Finance
ISBN: 9781119838401
1st Edition
Authors: Amir Sadr
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