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TABLE 20. 5 The Solution of Example 20.5 Total Future Amount Using Eq. (16.8) (dollars and cents) Interest (dollars Compounding Period Total Number of Compounding Periods and cents) 10 Annually 10 5000(1+ 0.06)"º = 8954.23 3954.23 0.06) 20 Semiannually 5000 1+ 2 = 9030.55 20 4030.55 40 0.06 5000 1+ 4 Quarterly 40 9070.09 4070.09 120 0.06 Monthly 120 5000 1+ = 9096.98 4096.98 12 3650 0.06 5000이 1 + 365 Daily 3650 = 9110.14 4110.14

TABLE 20. 5 The Solution of Example 20.5 Total Future Amount Using Eq. (16.8) (dollars and cents) Interest (dollars Compounding Period Total Number of Compounding Periods and cents) 10 Annually 10 5000(1+ 0.06)"º = 8954.23 3954.23 0.06) 20 Semiannually 5000 1+ 2 = 9030.55 20 4030.55 40 0.06 5000 1+ 4 Quarterly 40 9070.09 4070.09 120 0.06 Monthly 120 5000 1+ = 9096.98 4096.98 12 3650 0.06 5000이 1 + 365 Daily 3650 = 9110.14 4110.14

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Determine the interest earned on $5000 deposited in a savings account, for 10 years, based on one of the following quoted interest rates: 6% compounding annually, semiannually, quarterly, monthly, and daily. The solution to this problem is presented in Table 20.5 .

TABLE 20. 5 The Solution of Example 20.5 Total Future Amount Using Eq. (16.8) (dollars and cents) Interest (dollars Compounding Period Total Number of Compounding Periods and cents) 10 Annually 10 5000(1+ 0.06)"º = 8954.23 3954.23 0.06) 20 Semiannually 5000 1+ 2 = 9030.55 20 4030.55 40 0.06 5000 1+ 4 Quarterly 40 9070.09 4070.09 120 0.06 Monthly 120 5000 1+ = 9096.98 4096.98 12 3650 0.06 5000이 1 + 365 Daily 3650 = 9110.14 4110.14
Transcribed Image Text:TABLE 20. 5 The Solution of Example 20.5 Total Future Amount Using Eq. (16.8) (dollars and cents) Interest (dollars Compounding Period Total Number of Compounding Periods and cents) 10 Annually 10 5000(1+ 0.06)"º = 8954.23 3954.23 0.06) 20 Semiannually 5000 1+ 2 = 9030.55 20 4030.55 40 0.06 5000 1+ 4 Quarterly 40 9070.09 4070.09 120 0.06 Monthly 120 5000 1+ = 9096.98 4096.98 12 3650 0.06 5000이 1 + 365 Daily 3650 = 9110.14 4110.14
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