Читать книгу Fundamentals of Financial Instruments - Sunil K. Parameswaran - Страница 129

Rosalyn has deposited $20,000 with a bank for five years. The bank has agreed to pay 4.8% interest per annum compounded annually. How much can she withdraw at the end?

We will invoke the function as, FV(.048,5,,−20000) and the answer is $25,283.45. In this function we are inputting an extra comma in lieu of the value for Pmt. As an alternative we could have given the value as zero.

Now assume that the bank is quoting a rate of 4.8% per annum with quarterly compounding. The periodic interest rate is 1.20%, and the number of quarterly periods in five years is 20. The future value may be computed as follows.