Question
The Future Value formula is FV=PV (1+i/n)^(n)(t). Where the FV is future value, PV is Present value, i is interest at a decimal, n is
The Future Value formula is FV=PV (1+i/n)^(n)(t). Where the FV is future value, PV is Present value, i is interest at a decimal, n is number of compounds, and t is time in years. The change in compounds can dramatically change the future value of an investment or debt. I want you to calculate the future value with the same information except the change in compound. The following information will be used for both compounds. PV= $1,000.00, i=6%, t = 5 years.
a. Calculate the Future value when compounded quarterly?
b. Calculate the Future value when compounded daily?
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Governing Global Finance
Authors: Michele Fratianni, Paolo Savona
1st Edition
1138742147, 978-1138742147
