You invest $1,250 per year for eight (8) years in an account that pays 5.0% compounded annually, semiannually, monthly, daily and continuously. Determine the value of this investment at the end of the investment period assuming end of year payments. Show all work, i.e. calculator keystrokes and/or equations. Find dollar amounts to the nearest cent ($0.01). 

2) Provide a derivation of the continuous compound return (Rcont). Show formulas using FV and PV (or P0 and Pn).

Answer rating: 100% (QA)

1 Investment Value at the End of Each Compounding Period A Compounded Annually 1 time per year Interest rate per year I 50 Number of compounding perio... View the full answer