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1. Using simple interest computations, find the future value of $3,620 at 2 3/8% for six years (by hand)

1. Using simple interest computations, find the future value of $3,620 at 2 3/8% for six years (by hand)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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### Questions: 1. Using simple interest computations, find the future value of $3,620 at \(2 \frac{3}{8}\% \) for six years (by hand). 2. Now, using compound interest computations, find the future value of $3,620 at \(2 \frac{3}{8}\% \) for six years compounded quarterly (using the [Time Value of Money Solver](https://www.example.com)). Show what you put into the calculator for your work. 3. Now, using compound interest computations, find the future value of $3,620 at \(2 \frac{3}{8}\% \) for six years compounded monthly (using the [Time Value of Money Solver](https://www.example.com)). Show what you put into the calculator for your work. 4. Explain why the future values are different in questions 1-3. Explain who would benefit from more frequent compounding. Who would be at a disadvantage from more frequent compounding. ### Submit Files #### Files to submit * (0) file(s) to submit
Transcribed Image Text:### Questions: 1. Using simple interest computations, find the future value of $3,620 at \(2 \frac{3}{8}\% \) for six years (by hand). 2. Now, using compound interest computations, find the future value of $3,620 at \(2 \frac{3}{8}\% \) for six years compounded quarterly (using the [Time Value of Money Solver](https://www.example.com)). Show what you put into the calculator for your work. 3. Now, using compound interest computations, find the future value of $3,620 at \(2 \frac{3}{8}\% \) for six years compounded monthly (using the [Time Value of Money Solver](https://www.example.com)). Show what you put into the calculator for your work. 4. Explain why the future values are different in questions 1-3. Explain who would benefit from more frequent compounding. Who would be at a disadvantage from more frequent compounding. ### Submit Files #### Files to submit * (0) file(s) to submit
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