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I am not getting the answer using my BA II plus calculator. Can someone send me a calculator instruction on how they got the answer
I am not getting the answer using my BA II plus calculator. Can someone send me a calculator instruction on how they got the answer please .
compu eive rth number er of compounding periods in one year multiplied by the number of years. neriodic rate. r,/m, and the number of compounding periods, mN, must be compatibl EXAMPLE 4 The Future Value of a Lump Sum with Quarterly Compounding Continuing with the CD example, suppose your bank offers you a CD with a two- year maturity, a stated annual interest rate of 8 percent compounded quarterly and a feature allowing reinvestment of the interest at the same interest rate. You decide to invest $10,000. What will the CD be worth at maturity? Solution: Compute the future value with Equation 3 as follows: PV $10,000 ,, 8%-0.08 s/0.08/4 0.02 mV -4(2) 8 interest periods im S10,000(1.02) - $10,0000.17169) - $11,716.59 At maturity, the CD will be worth $11,716.59Step by Step Solution
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