Thanks!
Ike
"cmart02" wrote in message
...
Ira,
It depends on frequently the interest is paid. The formula to calculate a
Future value is:
FV = PV*(1+i/m)^(m*T)
Whe
FV = Future value
i = interest
m = number of times interest is paid in a year
T = number of years
So the future value of USD 2500 for five years (accumulated once a year)
is
given by (at a rate of, say, 10%:
FV = 2500*(1+0,1)^5= USD 4,026.28
Using the FV function in Excel you get =FV(0.1,5,,-2500). If interest is
paid more often, divide the interest by the number of times it is paid and
multiply the period (Nper) by this number to proportionate the interest.
For
example, if interest is paid monthly:
=2500*(1+0.1/12)^(12*5) = USD 4,113.27
or
=FV(0.1/12,5*12,,-2500) = USD 4,113.27
I hope it helps. Without knowing the characterists of the CD, it is
difficult to determine its exact value, but the above should help you to
have
a better idea...
Regards,
Robert
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