Lecture Notes on Time Value of Money
Find the value of $10,000 earning 5% interest per year after two years. Problem 2. Find the value of $10,000 earning 5% interest per quarter after two quarters. Both problems have same answer . $10,000 x (1.05)2 = $11,025. However: In the first problem t refers to years and i refers to interest rate per year. ................
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