Consider a dollar amount of $1,000 today, along with a nominal interest rate of 15.00%. You are interested in calculating the future value of this amount after 9 years. For all future value cafculations, enter $1,000 (with the negative sign) for. PV and 0 for PMT. When calculating the future value of $1,000, compounded annually for 9 years, you would enter a value of for N, a value of foe 1/x. Using the keystrokes you just identified on your financial calculator, the future value of $1,000, compounded annually for 9 at the given nominal interest rate, yields a future value of approximately When calculating the future value of $1,000, compounded semi-annually (twice per year) for 9 years, you would enter a value of for N, a value of for L/Y, Using the keystrokes you just identified on your financial calculatoc, the future value of $1,000, compounded semi-annually for 9 at the given nominal interest rate, yields a future value of When calculating the future value of $1,000, compounded quarterly for 9 years, you would enter a value of for N, a value of for, 1 . Using the iceystrokes you just identified on your financial calculator, the future value of $1,000, compounded quarterly for 9 at the given nominal interest rate, yields a future value of When calculating the future value of $1,000, compounded monthly for 9 years, you would enter a value of for N, a value of for t/Y. Using the keystrokes you just identified on your financial calculatoc, the future value of $1,000, compounded monthly for 9 at the given nominal 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 9 years, you would enter a value of for N, a value of for I/Y. Using the keystrokes you just identified on your financial calculator, the future value of $1,000, compounded daily for 9 at the given nominal interest rate, yieids a future value of Based on the results of your calculations, you can conclude that (all else equal) more frequent compounding leads to a future value. This is due to a periodic interest for more frequent compounding. Consider a dollar amount of $1,000 today, along with a nominal interest rate of 12.00%. You are interested in calculating the future value of this amount after 4 years. For all future value calculations, enter $1,000 (with the negative sign) for PV and 0 for PMT. The future value of $1,000, compounded annually for 4 at the given nominal interest rate, is approximately Using your finandal calculator, the future value of $1,000, compounded semi-annually for 4 at the given nominal interest rate, is approximately Using your financial calculator, the future value of $1,000, compounded quarterly for 4 at the given nominal interest rate, is approximately Using your financial calculator, the future value of $1,000, compounded monthly for 4 at the given nominal interest rate, is approximately Hint: Assume that there are 365 days in a year. Using your financial calculator, the future value of $1,000, compounded daily for 4 at the given nominal interest rate, is approximately
