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Finance Assignment | Professional Writing

Author:
June 10th, 2020

X Try again. STEP 1: Picture the problem If you earn an annual rate of 14% compounded bimonthly for 8 years, you really earn 2.3333% every 2 months or 48 2-month periods. Expressed as a timeline, this problem would look like the following: = 14% + 6 = 2.3333% every 2 months 2-Month Periods Time Period 0 1 Cash Flow – $4,000 Future Value STEP

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2: Decide on a solution strategy In this instance we are simply solving for the future value of $4,000. The only twist is that interest is calculated on a bimonthly basis. Thus, if you earn 14% compounded bimonthly for 8 years, you really earn 2.3333% every 2 months for 48 2-month periods. We can find the future value using a mathematical formula, a financial calculator, or an Excel spreadsheet. OK Clear All APROMU

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