In your spreadsheet, use the Future Value function (FV) to calculate the amount of interest that you
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Question:
In your spreadsheet, use the Future Value function (FV) to calculate the amount of interest that you would earn over 5 years on any original amount=> (equal to or greater than) $10,000, any nominal interest rate,
a) compounded monthly, then
b)compounded quarterly.
Explain Future Value in your (own words), describe the difference between the two calculated values, and explain why there is a difference.
C) In your spreadsheet, calculate the EFFECTIVE interest rate for a credit card on which the Nominal annual rate is 7.895% compounded monthly.
Include this calculation on the spreadsheet you submit in the final question.
Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
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