what formulas do i use for this:
Investments Suppose $10,000 is invested at an annual rate of 5% for 10 years. Find the future value if interest is compounded as follows.
A) Annually
B) Quarterly
C) Monthly
D)Daily (365 days)
In each case, use the formula
Future value = Initial value)*(1 + i)^n
where i is the interest fraction paid for the interval (year, quarter, month or day) and n is the number of intervals.
In case A), i = 0.05 and n = 10
In case B), i = 0.0125 and n = 40
Do the numbers. That's how you learn this stuff.
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