Using an annual interest rate \(r=4 \%\), recompute Table 2.1 for \(F V(T)\) for a horizon date of 6 months, \(T=0.5\). Repeat for a horizon date of \(1 \mathrm{y}\) and 6 months, \(T=1.5\).

Table 2.1

Transcribed Image Text:

Compoundings Per Year (m) 0=Simple 1=Annual 2=Semiannual 4=Quarterly 12=Monthly 365 Daily co=Continuous Number of Periods (N = Tx m) 2 4 8 24 2 365 Periodic Interest Rate (r/m) 4% 2% 1% 4%/12 4%/365 Future Value FV (T) $108,000 $108,160 Interest $8,000 $8,160 $108,243.22 $8,243.22 $108,285.67 $8,285.67 $108,314.30 $8,314.30 $108,328.23 $8,328.23 $108,328.71 $8,328.71