Let P be the principal amount, FV be the future value of the investment after one...
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Let P be the principal amount, FV be the future value of the investment after one year, and r the APR (as a decimal). With n compounding intervals per year, FV is given by the equation: (2) Use these equations to compute the future value after 1 year and the APY for the following scenarios. In all cases, r = 0.06 and P= $1000. (You should compute APY to at least 4 decimal places.) 1. Monthly compounding (n = 12)- you should get the same answer as at the end of Table 2. 2. Weekly compounding (n = 52) ³x (1+2)". 3. Daily compounding (n = 365) FV = Px Let P be the principal amount, FV be the future value of the investment after one year, and r the APR (as a decimal). With n compounding intervals per year, FV is given by the equation: (2) Use these equations to compute the future value after 1 year and the APY for the following scenarios. In all cases, r = 0.06 and P= $1000. (You should compute APY to at least 4 decimal places.) 1. Monthly compounding (n = 12)- you should get the same answer as at the end of Table 2. 2. Weekly compounding (n = 52) ³x (1+2)". 3. Daily compounding (n = 365) FV = Px
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Answer rating: 100% (QA)
1 Monthly Compounding n 12 FV P 1 rnnt FV 1000 1 00612121 FV 1000 1 000512 F... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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