Interest earned on savings deposit: TVM Calculation examples

Q. What is the balance in an account at the end of 10 years if $2,500 is deposited today and the account earns 4% interest, compounded annually? quarterly?


Open the Single Cash Flow screen. Select solve for Future value.

Present Value: 2500
Annual Interest Rate: 4
Time Period in Years: 10
Compounding Interval: Yearly

Ans: $3,700.61

Compounding Interval: Quarterly
Ans: $3,722.16

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