answersLogoWhite

0


Best Answer

monthly compounding is the better way to go, because your money earned through 7% monthly is compounded the next month with the original 7% monthly plus the new amount. Each month there after includes all the previous months and end the end of one year, you are ahead of the amount than a one time 7% annual compound.

User Avatar

Wiki User

17y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Adjust the annual formula for a future value?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Capital ending formula?

The formula for calculating the future value of an investment with compound interest is FV = PV x (1 + r)^n, where FV is the future value, PV is the present value, r is the annual interest rate, and n is the number of periods. This formula helps determine how much an investment will grow over time.


How do you find future value of share if you have present of it?

F = Future value P = Present Value i = Intrest Rate n = no. of years Therefore, the formula for future value of present amount :- F= P (1+i)n


How can you calculate a motorcycle's depreciation value?

Formula for calculating depreciation value Annual depreciation value = (Total cost - salvage value (if any) ) / useful life


What is the future value of 1200 a year for 40 years at 8 percent interest?

What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.


What is the future value for 10000 invested for 5 years with an annual interest rate of 8 percent?

$14,693.28


Which one of the following discount frequencies will yield the largest present value give a stated future value and annual percentage rate.?

daily


What is the future value of 10000 for an interest rate of 16 percent and 1 annual period of compounding?

With only one year the value is 11600


Annual Rate of Return Calculator?

Annual Rate of Return Calculator Use this calculator to determine the annual return of a known initial amount, a stream of deposits, plus a known final future value.


The future value of a 1000 investment today at 8 percent annual interest compounded semiannually for 5 years is?

$1480.24


How is the future value of a mixed stream of cash flows calculated?

formula for future value of a mixed stream


What is the future vaue of 100 cash flow for 8 percent at 10 years?

Formula for future value = 100(1 + 0.8)^10 = 215.89


What is the formula for future value of ordinary annuity?

FVoa = PMT [((1 + i)n - 1) / i]FVoa = Future Value of an Ordinary AnnuityPMT = Amount of each paymenti = Interest Rate Per Periodn = Number of Periods