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Earn +20 ptsQ: What is the effect of changing the compounding period on the future value?
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When there is only one compounding period in a ordinary annuity the table factor for future value is always 1?
True
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
What is the effect of changig length or mass of pendulum on value of g?
Changing the length will increase its period. Changing the mass will have no effect.
When does interest begins compounding in an ordinary annuity?
At the end of the second period
What is future value of 1 calculated at 8 percent in 18 periods?
It depends on the period. -- If the period is 1 year, the future value is 3.996 . -- If the period is 6 months, the future value is 2.026 . -- If the period is 3 months, the future value is 1.428 . -- If the period is 2 months, the future value is 1.269 . -- If the period is 1 month, the future value is 1.196 . These are compounded values. If interest is simple, then the value after 18 years is 2.44 .
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