Now let’s say your company had a great year, and you receive a $20,000 bonus! You decide you should invest it, so you find a CD that will pay 6.5% interest compounded quarterly. How much will you have in 10 years? 20 years?
|
N
|
|
|
I%
|
|
|
PV
|
|
|
PMT
|
|
|
*FV
|
|
|
P/Y
|
|
|
C/Y
|
|
|
PMT: END BEGIN
|
|
|
|
N
|
|
|
I%
|
|
|
PV
|
|
|
PMT
|
|
|
*FV
|
|
|
P/Y
|
|
|
C/Y
|
|
|
PMT: END BEGIN
|
|
3. You want to have $3000 in 18 months to help pay for school. How much will you have to initially invest at 4.75% compounded monthly to reach your goal. In this case, you know the future value and you are figuring out the principal.
|
|
N
|
|
|
I%
|
|
|
*PV
|
|
|
PMT
|
|
|
FV
|
|
|
P/Y
|
|
|
C/Y
|
|
|
PMT: END BEGIN
|
|
|
