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2. Calculate the amount of the previous problem, if the investment is compounded quarterly.

2. Calculate the amount of the previous problem, if the investment is compounded quarterly.

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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Step 1: Given Value Initial Investment = c = $155,000 Compound = yearly Interest rate=i = 21% Time = n = 7 years Step 2: calculation Future Value = c*(1+r)^n = 155,000*(1 + 0.21)^7 = 155,000 * 3.79749833583 = 588,612.242054 = $588,612.24 Solution Thus, the amount of the investment after 7 years would be $588,612.24
Transcribed Image Text:Step 1: Given Value Initial Investment = c = $155,000 Compound = yearly Interest rate=i = 21% Time = n = 7 years Step 2: calculation Future Value = c*(1+r)^n = 155,000*(1 + 0.21)^7 = 155,000 * 3.79749833583 = 588,612.242054 = $588,612.24 Solution Thus, the amount of the investment after 7 years would be $588,612.24
SOLVE STEP BY STEP IN DIGITAL FORMAT 2. Calculate the amount of the previous problem, if the investment is compounded quarterly. Formulas Compound interest Annual compounding M = C(1+i)n 1 = Cni M = C(1 + i) Fractional capitalization M=C{1+4)*
Transcribed Image Text:SOLVE STEP BY STEP IN DIGITAL FORMAT 2. Calculate the amount of the previous problem, if the investment is compounded quarterly. Formulas Compound interest Annual compounding M = C(1+i)n 1 = Cni M = C(1 + i) Fractional capitalization M=C{1+4)*
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