1. An investment is made at 8%, compounded quarterly, for 10 years. (a) Find the number of...

Question:

1. An investment is made at 8%, compounded quarterly, for 10 years.

(a) Find the number of periods.

(b) Find the interest rate per period.

2. Write the formula for the future value of a compound interest investment, if interest is compounded

(a) Periodically

(b) Continuously.

Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...