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**Unformatted text preview: **C. Investing for more than one period 1. Going back to the $100 investment, if you leave the entire $110 in the bank, you will earn $110 × 10% = $11 in interest during the second year, so you will have a total of $110 + $ 11 = $121. 2. Four Parts of $121-The original principal $100-First year’s interest $10-Second year’s interest $10-Compound interesting $1 3. Future Value = Principal × ( 1 + r) t II. Present Value and Discounting III. More about Present and Future Value...

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