Find the future value of Rene\'s deposit assuming the interest is compounded 1.

Question

Find the future value of Rene's deposit assuming the interest is compounded 1. Annually 2. Quarterly 3. Monthly 4. Continuously Assignment Score: 64.99%C64 99 of 100 peso Cemparing Comparing compounding perieds Personal Finance Problem René Levin wishes to desermine the funsure value at the end of2 years of a s9.500 deposit made today into an account paying a nominal anual nate of 13% a. Find the future value of Rene' Compare your findings in pert s, and use them to demotrhe the relatiomshie nding frecu c. What is the maximum future value obtainable given the $9,500 deposit, the 2-year time period s deposit, assuming that interest is compounded (1) annually, (2) n part a, and use them to demonstrate the relationship between compounding frequency and future value ssuming that interest is compounded () anually, (2) quanerly, C) monthly, and (4) continomly. given the $9,500 deposit, the 2-year time period, and the l3% nominal annual ne? Use your finings in pan atoeplin a. (1) For annual compounding, the future value of Renes deposit is SD·(Round to the nearest cent)

Explanation / Answer

b) The Future value increase with the increase in period of compounding with other factors remaining the same.

c) Maximum future value is:

Annually Deposit 9500 FVIF 1.2769 Annually 12130.55 Quarterly FVIF 1.2916 value 12270.2 Monthly 1.2951 value 12303.45 Continoulsy 1.3121 Value 12464.95

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