2. Future Value of a Lump Sum: If you invest $1,200 today at this 7.2% nominal interest rate, what would your investment be worth under the various compounding periods in 4 year? Show the return components for the future value in 4 years. Use the effective rates in your calculations.

Inputs
Nominal Rate	7.2000%
Cashflow per year	$1,200.00
Holding Period	4 years

Q2: Future Value Lump Sum

Compounding	Effective Rate	Future Value	Return of Principal	Total Interest	Regular Interest	Interest on Interest
Annual
Semi-annual
Quarterly
Monthly
Daily
Continuous

Answer rating: 100% (QA)

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