Simple Interest Compound Interest and Effective Yield
Example : Future Value for Compound Interest Find the future value of $8560 at 4% compounded quarterly for 8 years. Solution P $8560, r 4% .04, m 4. Over 8 years n 8m 8 4 32. A P 1 mr n $8560 1 .04 4 32 $11769.49. Example : Present Value for Compound Interest What amount must be deposited today, at 5% compounded monthly, so that it will be ... ................
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