Chapter 3 Time Value of Money

For daily rate: (1 + d)365 = 1 + i 2.3 EXAMPLE 9 – Frequency of compounding. Suppose you plan to invest $100 for 5 years at a nominal annual rate of 10%. What will happen to the future value of your investment if interest in compounded more frequently than once a year? Because interest will be earned on interest more often, you might expect the ................
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