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%.
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
Problem 1PE
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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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