MGT 326 Ch. 4: Time Value of Money (bdh), Part 2
{"Image DocumentName": "MGT 326 Ch. 4: Time Value of Money (bdh), Part 2", "Image ImageDescription": "Payments Don\u2019t Coincide with Compounding Periods (not covered in your text) Example: Today you open a new savings account that pays 3.7% compounded weekly. You plan to deposit  400 into this account at the end of every month, starting at the end of this month. How much will you have in this account 2 years from now? FV = ? r = 3.7% 2. years months. PMT =  400. T = # of years = 2. m = # of payments per year = 12. n = total # of payments = m x T = 12 x 2 = 24. Enter Parameters: Set payments per year to 12; [2nd, P/Y, 12, ENTER] Set compounding periods per year to 52; [\u2193, 52, ENTER, CE/E] Enter number of payments [24, N] (Note: in this case, N is the number of payments, not number of compounding periods) Enter interest rate; [3.7, I/Y] Enter payments; [400, PMT] Find FV, [CPT,FV] and viola! FV =  9,", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}