Problem:
Determine the value at the end of four years of a $10,000 investment (today) in a bank certificate of deposit (CD) that pays a nominal annual interest rate of 12 percent, compounded.
a. Semiannually:
b. Quarterly:
c. Monthly:
Summary of question:
This question basically belongs to Finance as well as it explains about calculation of compounded interest rate for a deposit in a bank. The calculation needs to be done semiannually, quarterly and monthly.