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I'm using the equation C(1+r/m)^mT where C= initial investment amount, r = interest rate, m = number of times per year it is compounded and
I'm using the equation C(1+r/m)^mT where C= initial investment amount, r = interest rate, m = number of times per year it is compounded and T = number of years.
My answers always seem waaayyy too big...pretty sure I'm not using the right formula.
Please help, thanks!
What is the future value three years from now of $1,000 invested today in an account with a
stated annual interest of 8 percent.
(a) compounded annually
(b) compounded semiannually
(c) compounded monthly
(d) compounded continuously
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