Question
Congratulations on your bonus! You've been doing such a good job at work, you have been given $5,000 bonus. Instead of buying something today, you
Congratulations on your bonus! You've been doing such a good job at work, you have been given $5,000 bonus. Instead of buying something today, you decide to save it. You put it in an investment account that earns 8% interest per year with annual compounding. In ten years, you cash out the account. How much will you have in ten years?
- are you trying to find a PV or FV?
- show your calculations using the formula
- show your calculations using the keystrokes for your financial calculator (state which financial calculator you are using)
- what would your answer be if compounding was monthly and why is there a difference?
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
9781119563099
