Consider a dollar amount of $750 today, along with a nominal interest rate of 15.00%. You are interested in calculating the future value of this amount after 5 years. For all future value calculations, enter -$750 (with the negative sign) for PV and 0 for PMT. When calculating the future value of $750, compounded annually for 5 years, you would enter a value of 0 Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded annually for 5 at the given nominal interest rate, yields a future value of approximately $1,508.52. When calculating the future value of $750, compounded semi-annually (twice per year) for 5 years, you would enter a value of value of 7.50% for I/Y. When calculating the future value of $750, compounded quarterly for 5 years, you would enter a value of for I/Y. for N, a value of 15 for I/Y. Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded semi-annually for 5 at the given nominal interest rate, yields a future value of When calculating the future value of $750, compounded monthly for 5 years, you would enter a value of for I/Y. Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded quarterly for 5 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 $750, compounded daily for 5 years, you would enter a value of for I/Y. for N, a value of Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded monthly for 5 at the given nominal interest rate, yields a future value of Sta for N, a for N, a value of for N, a value of Based on the results of your calculations, you can conclude that (all else equal) more frequent compounding leads to a This is due to a periodic interest for more frequent compounding. Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded daily for 5 at the given nominal interest rate, yields a future value of future value.

Consider a dollar amount of $750 today, along with a nominal interest rate of 15.00%. You are interested in calculating the future value of this amount after 5 years. For all future value calculations, enter -5750 (with the negative sign) for PV and O for PMT. When calculating the future value of $750, compounded annually for 5 years, you would enter a value of for N, a value of for t/Y. Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded annually for 5 at the given nominal interest rate, yields a future value of approximately When calculating the future value of $750, compounded semi-annually (twice per year) for 5 years, you would enter a value of for N, a value of for 1/Y. Using the keystrokes you just identified on your financial cakulator, the future value of $750, compounded semi-annually for 5 at the given nominal interest rate, yelds a future value of When calculating the future value of $750, compounded quarterly for $ vears, you would enter a value of for N, a value of for 1/%. Using the keystrokes you just ideritified on your financial calculator, the future value of $750, compounded quarterfy for 5 at the given nominal interest rate, yields a future value of When calculating the future value of $750, compounded monthly for 5 years, you would enter a value of for N, a value of for 1/%. Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded monthly for 5 at the given nominal interest rate, vields a future value of Hint: Assume that there are 365 days in a year: When calculating the future value of $750, compounded daily for $ years, you would enter a value of for I. for N, a value of Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded daily for 5 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 This is due to a periodic interest for more frequent compounding. future value