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