Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. m $150 4.3% compounding time in frequency years $475 3.3% annually $125 7.4% semiannually quarterly 8 6 7 future value $ $ $ + interest earned $ JUT $ $
Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. m $150 4.3% compounding time in frequency years $475 3.3% annually $125 7.4% semiannually quarterly 8 6 7 future value $ $ $ + interest earned $ JUT $ $
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:# Future Value Calculation Scenarios
The table below outlines several scenarios to calculate the future value of periodic deposits given different compounding frequencies and interest rates. The following variables are used:
- **m**: Periodic Deposit
- **r**: Interest Rate
| m | r | Compounding Frequency | Time in Years | Future Value ($) | Interest Earned ($) |
|------|------|-------------------------|---------------|------------------|---------------------|
| $150 | 4.3% | Annually | 8 | | |
| $125 | 7.4% | Semiannually | 6 | | |
| $475 | 3.3% | Quarterly | 7 | | |
| $500 | 3.7% | Monthly | 10 | | |
| $225 | 6.1% | Weekly | 8 | | |
To determine the future value and interest earned for each scenario, use the formula for compound interest along with the periodic deposit schedule specific to each compounding frequency.
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