Consider a dollar amount of $1,000 today, along with a nominal interest rate of 6.00%. You are interested in calculating the future value of this amount after 7 years. For all future value calculations, enter $1,000 (with the negative sign) for PV and 0 for PMT. When calculating the future value of $1,000, compounded annually for 7 years, you would enter a value of for N, a value of Using the keystrokes you just identified on your finandal calculator, the future value of $1,000, compounded annually for 7 at the given nominal interest rate, yields future value of approximately value of for 1/Y. Using the keystrokes you just identified on your financial calculator, the future value of $1,000, compounded semi-annually for 7 at the given nominal interest rate, yields a future value of When calculating the future value of $1,000, compounded quarterly for 7 years, you would enter a value of for N, a value of for I/Y. Using the keystrokes you just identified on your finandal calculator, the future value of $1,000, compounded quarterly for 7 at the given nominal interest rate, yields a future value of When calculating the future value of $1,000, compounded monthly for 7 years, you would enter a value of for 1/Y. Using the keystrokes you just identified on your financial calculator, the future value of $1,000, compounded monthly for 7 at the given nominal interest rate, yields a future value of Hint: Assume that there are 365 davi in a year. When calculating the future value of $1,000, compounded daily for 7 years, you would enter a value of for N, a value of interest rate, yields a future value of approximately When calculating the future value of $1,000, compounded semi-annually (twice per year) for 7 years, you would enter a value of value of for I/Y. Using the keystrokes you just identified on your financial calculator, the future value of $1,000, compounded semi-annually for 7 at the given nominal interest rate, yields a future value of When calculating the future value of $1,000, compounded quarterly for 7 years, you would enter a value of for N, a value of for I,C. Using the keystrokes you just identified on your financial calculator, the future value of $1,000, compounded quarterly for 7 at the given nominat interest rate, yields a future value of When calculating the future value of $1,000, compounded monthly for 7 years, you would enter a value of for I/Y. Using the keystrokes you just identified on your finandal calculator, the future value of $1,000, compounded monthly for 7 at the given tominal interest rate, yields a future value of Hint: Assume that there are 365 days in a year. When calculating the future value of $1,000, compounded daily for 7 years, you would enter a value of for 1/Y. Using the keystrokes you just identified on your financial calculator, the future value of $1,000, compounded daily for 7 at the given nominal interest rate, vields a future value of Based on the results of your calculations, you can condude that (all else equal) more frequent compounding leads to a This is due to a periodic interest for more frequent compounding
