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Unformatted text preview: be 4 and the interest rate would be
4%. The future value of $116.99 will appear on the calculator display as
shown in the first display at the left.
For the quarterly compounding case, the number of periods would be 8 and
the interest rate would be 2%. The future value of $117.17 will appear on the calculator display as shown in the second display at the left. FV
117.17 Spreadsheet Use The future value of the single amount with semiannual and
quarterly compounding also can be calculated as shown on the following Excel
spreadsheet. CHAPTER 4 Time Value of Money 157 Comparing the calculator, table, and spreadsheet values, we can see that the
calculator and spreadsheet values agree generally with the values in Table 4.7 but
are more precise because the table factors have been rounded. Continuous Compounding
Compounding of interest an
infinite number of times per year
at intervals of microseconds. In the extreme case, interest can be compounded continuously....
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