The future-value-of-money formula relates how much a current investment will be worth in the future, assuming a constant interest rate. FV = PV X (1+1)" where FV is the future value PV is the present value or investment I is the interest rate expressed as a fractional amount per compounding period-i.e., 5% is expressed as .05 n is the number of compounding periods. (a) Create a MATLAB® function called futureValue with three inputs: the investment (present value), the interest rate expressed as a fraction, and the number of compounding periods. (b) Use your function to determine the value of a $1000 investment in 10 years, assuming the interest rate is 0.5% per month, and the interest is compounded monthly. (c) Use your function to make a plot of the same investment details above, monthly interest rate on the x-axis ranging from 0.1 % per month to 1% and the future value on the y-axis. Call the plot futureValuePlot.jpg
The future-value-of-money formula relates how much a current investment will be worth in the future, assuming a constant interest rate. FV = PV X (1+1)" where FV is the future value PV is the present value or investment I is the interest rate expressed as a fractional amount per compounding period-i.e., 5% is expressed as .05 n is the number of compounding periods. (a) Create a MATLAB® function called futureValue with three inputs: the investment (present value), the interest rate expressed as a fraction, and the number of compounding periods. (b) Use your function to determine the value of a $1000 investment in 10 years, assuming the interest rate is 0.5% per month, and the interest is compounded monthly. (c) Use your function to make a plot of the same investment details above, monthly interest rate on the x-axis ranging from 0.1 % per month to 1% and the future value on the y-axis. Call the plot futureValuePlot.jpg
Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
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Transcribed Image Text:6.3 The future-value-of-money formula relates how much a current investment
will be worth in the future, assuming a constant interest rate.
FV = PV X (1+ I)"
where
FV is the future value
PV is the present value or investment
I is the interest rate expressed as a fractional amount per
compounding period-i.e., 5% is expressed as .05
n is the number of compounding periods.
(a) Create a MATLAB® function called futureValue with three inputs:
the investment (present value), the interest rate expressed as a fraction,
and the number of compounding periods.
(b) Use your function to determine the value of a $1000 investment in 10
years, assuming the interest rate is 0.5% per month, and the interest is
compounded monthly.
(c) Use your function to make a plot of the same investment details above, with the
monthly interest rate on the x-axis ranging from 0.1 % per month to 1% per month,
and the future value on the y-axis. Call the plot futureValuePlot.jpg
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