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Computing Future Values of Lump-sums

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The interest rate is 6% on an investment of $10,000,000. What is the value after 4 years if it is compounded:

a. annually
b. monthly
c. continuously

Calculations and formulas must be done in Excel.

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Solution Summary

This solution illustrates how to compute the future value of a lump-sum under different compounding assumptions.

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