Question

# Using the Formulas for finite geometric series:

1. (a) Suppose a principal R is invested at

regular intervals, compounding at a rate R% in

each period, over N periods. Moreover, assume that your compounding period occurs

three times more frequently than your deposits (for example, if you invest quarterly but

compound monthly), and that N is divisible by 3. Write out a sum which describes the

present value of this investment, then use the formula for a nite geometric series to

reduce this to a formula without sums.