I have been asked to "Find the future value of $ 500 invested for a period of 4 years, at 10% p.a. compounded annually. This part I can understand:
$ 500(1.1)^4 = $ 732.05
But then it says: "What if the interest was compounded daily?"
Well, the way I tried to work this out is as follows:
500(1.1/365)^1460
Too which the calculator answers: "0"
Do I have the formula for daily compound interest wrong? Or is it that the calculator cannot compute the answer?
How to operate a financial calculator. I use an HP 10bII. Knowing how to use this will ensure professional packaging of notes for sale so that you may assign their purchase contracts to an investor like myself for an assignment fee.
iPhone/iPod Financial Calculator available at
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