Consider the formula for computing the future value of money: Future Value = Investment * (1 + I)^n I = interest rate expressed as a fractional amount per compounding periods (5% would be expressed as .05) n = number of compounding periods (typically monthly or yearly) a. Create a function file called "future_value" with three inputs: investment, interest rate, number of compounding periods. ( see the sample function file with multiple inputs in the overview page) b. In your main program, use this function to calculate the value of a $500 investment in 4 years, with a monthly compounding interest rate of .75%.

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
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Using MATLAB or Octave

 

Consider the formula for computing the future value of money:

Future Value = Investment * (1 + I)^n

I = interest rate expressed as a fractional amount per compounding periods (5% would be expressed as .05)

n = number of compounding periods (typically monthly or yearly)

a. Create a function file called "future_value" with three inputs: investment, interest rate, number of compounding periods. ( see the sample function file with multiple inputs in the overview page)

b. In your main program, use this function to calculate the value of a $500 investment in 4 years, with a monthly compounding interest rate of .75%.

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