FFN20303: A deposit of $500 (PV) made five years ago is worth $705.30 today (FV). The deposit pays interest semi-annually: Money and Capital Market Assignment, MSU, Malaysia
| University | Management & Science University (MSU) |
| Subject | FFN20303 Money and Capital Market Assignment |
- A deposit of $500 (PV) made five years ago is worth $705.30 today (FV). The deposit pays interest semi-annually. What is the interest rate?
Note: If you press √ means that the reciprocal of power 2 (^2). In this calculation, it refers to power 10@ ^ 10, therefore 10√
From the calculator, you press 10 then SHIFT then ^..10 x√ 1.4106
FV = PV (1 + r) t – annually
FV = PV (1 + r/2) tx2 – semiannually
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