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.
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.
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
Formula for calculating depreciation value Annual depreciation value = (Total cost - salvage value (if any) ) / useful life
What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.
$14,693.28
daily
With only one year the value is 11600
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.
$1480.24
formula for future value of a mixed stream
Formula for future value = 100(1 + 0.8)^10 = 215.89
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