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Effects of different compounding periods on future values of $1,000 invested at an 15% nominal interest...

  1. Effects of different compounding periods on future values of $1,000 invested at an 15% nominal interest rate.

Initial Amount

Compounding periods

Effective annual rate

FV at end of 1 year

$1,000

Annually

$1,000

Semiannually

$1,000

Quarterly

$1,000

Monthly

$1,000

Daily (365 days)

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