Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. a. Compounding annually means that there is one interest payment period per year. So, ( n=5 ) and ( i=r=0.08 ). [ begin{array}{l} F

4.
image text in transcribed
a. Compounding annually means that there is one interest payment period per year. So, \\( n=5 \\) and \\( i=r=0.08 \\). \\[ \\begin{array}{l} F V=P V(1+i)^{n} \\\\ F V=1,000(1+0.08)^{5} \\\\ F V=1,000(1.4693280768) \\\\ F V=1469.3280768 \\end{array} \\] Therefore, rounded to the nearest cent, the final answer is \\$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sport Finance

Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello

4th Edition

1492559733, 978-1492559733

More Books

Students also viewed these Finance questions