Answer in Financial Math for Ryan #271966
March 15th, 2023
Refer to this information. Calculate the future value of a 4 year investment of R13270 at an interest rate of 6.09% per annum compounded quarterly.
If the interest rate changes at the end of the second year from 6.09$ per annum compounded quarterly to 7.54% per annum compounded quarterly, the accumulated value of the original investment of R13270 at the end of 4 years will be..
“FV = PV(1 + r/m)^{mt}”
1.
“FV = 13270(1 + 0.0609/4)^{4cdot4}=R 16899.26”
2.
at the end of the second year:
“FV = 13270(1 + 0.0609/4)^{2cdot4}=R 14975.09”
at the end of 4 years:
“FV = 14975.09(1 + 0.0754/4)^{2cdot4}=R 17388.07”