Anthony and Michelle Constantino just got married and received $30,000 in cash gifts for their wedding. How

Question:

Anthony and Michelle Constantino just got married and received $30,000 in cash gifts for their wedding. How much will they have on their 25th anniversary if they place half of this money in a fixed-rate investment earning 7 percent compounded annually? Would the be larger or smaller if the period was 6 months? How much more or less would they have earned with this shorter period?
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...