Question
It should be Ct = PV (1 + r)10, not Ct = PV (1 + r)20, to calculate the future value after 20
It should be Ct = PV × (1 + r)10, not Ct = PV × (1 + r)20, to calculate the future value after 20 years in scenario A. This is due to the fact that there are 10 compounding periods—that is, 20 years of interest applied once a year.
Why 20 year don't have 20 compounding period
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Business Mathematics In Canada
Authors: Ernest Jerome
7th edition
978-0071091411, 71091416, 978-0070009899
