Chapter 9: Net Present Value and other Investment Criteria

(2) Instruct your calculator to change the frequency of compounding: hit 2nd, then I/Y. Hit 1, then enter, then hit the down arrow key - it should read C/Y = ?. If you want monthly compounding, enter 12, then enter, then 2nd, then enter. Now solve as follows: PMT = 0, PV = -1,000, I/Y = 8, n = 12, then hit Fv and CPT to get 24,273.85. ................
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