Find the future value of an investment of $100,000 made today for five years and paying 8.75
Question:
Find the future value of an investment of $100,000 made today for five years and paying 8.75 percent for the following compounding periods:
a. Quarterly.
b. Monthly.
c. Daily.
d. Continuous.
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...
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Amount invested today PV 100000 Return expected from investment i 875 Duration of investmen...View the full answer
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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