Chapter $5-$ Section $1$

Future Value and Compounding

Excel contains numerous financial functions, many of which relate to the time value of money. We will begin by using equations before moving to Excel's functions.

Example $5\mathrm{.}1$: Interest on Interest

Suppose you have the following investment opportunity for two years:

$\backslash$table$[[$Interest rate per year,,$14\mathrm{.}0\%$