In: Finance
Calculate the future value of a $4,000 CD earning 5.2% interest for 8 years under the following scenarios (use a calculator for the algebraic formula answer, check using the =FV function). (in Excel use =FV(i,n,0,(PV),0). Make PV negative because it is a cash out-flow. (Use the EXP function for the continuous compounding problem.) Show what Algebraic Formula you use. Submit a screenshot of this sheet filled out with the algebraic calculations, and submit your excel spreadsheet with an identifiable name to the class canvas website.
Algebraic Formula Answer Spreadsheet
A. Compounded yearly: _____________ ___________
B. Compounded twice a year _____________ ___________
C. Compounded quarterly: _____________ ___________
D. Compounded monthly _____________ ___________
E. Compounded continuously _____________ ___________
Algebraic formula
Future value = Initial amount*(1+Annual interest rate/Compoundings per year)^(Compoundings per year*Number of years)