Compound interest

Beginning Value 0.06 Ending Value Year 1 1000.00 0.06 $ 60.00 1060.00 Year 2 1060.00 0.06 $ 63.60 1123.60 Year 3 1123.60 0.06 $ 67.42 1191.02 Year 4 1191.02 0.06 $ 71.46 1262.48 FUTURE TABLE GO TO 6.0% n=4 so you get 1.262477 SOOOO 1000 1.262477 1262.48 PV FV Pmt Semi Quarterly i=interest 12 12/2 = 6% 12/4 =3% January february march april may june july year ------------------------------------------------------------------------------------------------------ Semi -------------------------------------------------------------------------- -------------- Quarter;y ----------------------------------------- ---------------------------- --------------

$1,262.48 excel august september october november december n n ------------------------------------------------------- 12% 1*1 1 ---------------------------------------------------------------- 12/2 = 6% 1*2 2 ----------------------- ------------------------------------- 12/4 = 3% 1*4 4

Beginning 0.12 Ending Value Year 1 1000.00 0.12 $ 120.00 1120.00 Year 2 1120.00 0.12 $ 134.40 1254.40 Year 3 1254.40 0.12 $ 150.53 1404.93 Year 4 1404.93 0.12 $ 168.59 1573.52 Tables 1000 1.57319 1573.19

Excel $1,573.52