1.
What are the
future value of $10,000 with and interest rate of 16 percent and one annual...

Question

1.
What are the
future value of $10,000 with and interest rate of 16 percent and one annual period
of compounding? With an annual interest rate of 16 percent and two semiannual periods
of compounding? With an annual interest rate of 16 percent and four quarterly periods
compounding?

David · Accepted Answer

Future Value = Present Value (1 + interest /n)^n 
PV = $10000 
Interest = 16 % 
Case I  n= 1 One period 
10000*(1+16%/1)^1 
=10000(1.16) 
=$11600
Case II n= 2 semi annual 
10000*(1+16%/2)^2 
=10000*(1.08)*(1.08) 
=$11664
Case III n= 4 quarterly 
10000(1+16%/4)^4 
=10000(1.

1. What are the future value of $10,000 with and interest rate of 16 percent and one annual period of compounding? With an annual interest rate of 16 percent and two semiannual periods of compounding?...

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