a) What would be the future value of $18,000 invested now if the money remains deposited for eight years, the annual interest rate is 18 percent, and interest on the investment is compounded semi-annually?               b) How would your answer for (a) change if quarterly compounding were used?

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
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a) What would be the future value of $18,000 invested now if the money remains deposited for eight years, the annual interest rate is 18 percent, and interest on the investment is compounded semi-annually?

 

 

 

 

 

 

 

b) How would your answer for (a) change if quarterly compounding were used?

 

 

 

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