CFIN -STUDENT EDITION-ACCESS >CUSTOM<
CFIN -STUDENT EDITION-ACCESS >CUSTOM<
6th Edition
ISBN: 9780357752951
Author: BESLEY
Publisher: CENGAGE C
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Chapter 4, Problem 4PROB
Summary Introduction

St invested $950 five years ago at 7.2% interest compounded monthly. Sh invested $900 five years ago at 8% interest compounded quarterly.

Future value is the value of the current investment or series of payments in the future compounded at predetermined interest rate for a specified period.

FV=PV(1+rm)n×m

Here,

The future value is “FV”.

The present value is “PV”.

The interest rate is “r”.

The maturity period of time period is “n”.

The no of compounding in a year is “m”.

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