Consider a dollar amount of $500 today, along with a nominal interest rate of 9.00%. You areinterested in calculating the future value of this amount after 5 years.For all future value calculations, enter -$500 (with the negative sign) for PV and 0 for PMT.When calculating the future value of $500, compounded annually for 5 years, you would entera value of 5 for N, a value of 9 for I/Y.Using the keystrokes you just identified on your financial calculator, the future value of $500,compounded annually for 5 at the given nominal interest rate, yields a future value ofapproximatelyWhen calculating the future value of $500, compounded semi-annually (twice per year) for 5for N, a value offor I/Y.years, you would enter a value ofUsing the keystrokes you just identified on your financial calculator, the future value of $500,compounded semi-annually for 5 at the given nominal interest rate, yields a future value ofWhen calculating the future value of $500, compounded quarterly for 5 years, you would enterfor N, a value offor I/Y.a value ofUsing the keystrokes you just identified on your financial calculator, the future value of $500,compounded quarterly for 5 at the given nominal interest rate, yields a future value ofWhen calculating the future value of $500, compounded monthly for 5 years, you would enterfor I/Y.for N, a value ofa value ofUsing the keystrokes you just identified on your financial calculator, the future value of $500,compounded monthly for 5 at the given nominal interest rate, yields a future value ofHint: Assume that there are 365 days in a year.When calculating the future value of $500, compounded daily for 5 years, you would enter afor I/Y.value offor N, a value ofUsing the keystrokes you just identified on your financial calculator, the future value of $500,compounded daily for 5 at the given nominal interest rate, yields a future value ofBased on the results of your calculations, you can conclude that (all else equal) more frequentfuture value. This is due to aperiodic interest forcompounding leads to amore frequent compounding.

The future value of the current deposit can be found by using Excel sheet FV function where the…

Consider a dollar amount of $500 today, along with a nominal interest rate of 9.00%. You are interested in calculating the future value of this amount after 5 years. For all future value calculations, enter -$500 (with the negative sign) for PV and 0 for PMT. When calculating the future value of $500, compounded annually for 5 years, you would enter a value of 5 for N, a value of 9 for I/Y. Using the keystrokes you just identified on your financial calculator, the future value of $500, compounded annually for 5 at the given nominal interest rate, yields a future value of approximately When calculating the future value of $500, compounded semi-annually (twice per year) for 5 years, you would enter a value of for N, a value of for I/Y. Using the keystrokes you just identified on your financial calculator, the future value of $500, compounded semi-annually for 5 at the given nominal interest rate, yields a future value of When calculating the future value of $500, compounded quarterly for 5 years, you would enter for I/Y. a value of for N, a value of Using the keystrokes you just identified on your financial calculator, the future value of $500, compounded quarterly for 5 at the given nominal interest rate, yields a future value of When calculating the future value of $500, compounded monthly for 5 years, you would enter a value of for N, a value of for I/Y. Using the keystrokes you just identified on your financial calculator, the future value of $500, compounded monthly for 5 at the given nominal interest rate, yields a future value of Hint: Assume that there are 365 days in a year. When calculating the future value of $500, compounded daily for 5 years, you would enter a for I/Y. value of for N, a value of Using the keystrokes you just identified on your financial calculator, the future value of $500, compounded daily for 5 at the given nominal interest rate, yields a future value of Based on the results of your calculations, you can conclude that (all else equal) more frequent future value. This is due to a periodic interest for compounding leads to a more frequent compounding.