Quantcast

End-of-Year Wealth

Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
on
Sep 8, 2014, 10:04:05 PM
`EYW = C_o * (1 + ( "r" / "m" ))^ "m" `
C_o
r
m
Tags
UUID
0c7283be-37a4-11e4-b7aa-bc764e2038f2

The End-of-Year Wealth takes an initial investment and shows what the value will be at the end of the year. There are different compounding periods that investments can go through. Annual is done yearly, semiannual is half a year or done twice a year, and quarterly is done four times a year. 

Input Variables:

C_o - Initial Investment

r- Interest Rate

m- number of times a year compounding an investment

Output for Formula:

Returns the End-of Year Wealth

 

/attachments/0c7283be-37a4-11e4-b7aa-bc764e2038f2/EndofYearWealth-illustration.png

Notes

Compounding is the arithmetic process of determining the final value of a cash flow or series of cash flows when compound interest is applied.


  • Comments
  • Attachments
  • Stats
No comments
This site uses cookies to give you the best, most relevant experience. By continuing to browse the site you are agreeing to our use of cookies.