compound
thanks joeu2004 :)
--
oldLearner57
" wrote:
RWN wrote:
"tikchye_oldLearner57" wrote:
can anybody teach me how to find how much will i have at the end of 5 years???
example:
I want to save $5000 at 4% per annum for 5 years. How to derive a formula
to find out how much will i have at the end of the 5th years.
5,000 * 1.04^5
Equivalently:
=fv(4%, 5, 0, -5000)
However, that assumes only annual compounding. That would be
appropriate if 4% is the APY. But if it is the nominal rate and if the
OP is talking about a savings account in the US, we might expect daily
compounding at the rate of 4%/365. In that case:
=fv(4%/365, 5*365, 0, -5000)
A difference of nearly $24 ;-).
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