# Future value money time value - Finance Time Value of Money by ClassOf1

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Calculation of future value of money considering time value : What is the ending balance from an initial deposit of \$5,000 at 14% compounded monthly for 4 years?

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```									              Sub: Finance                                                              Topic: Time Value of Money

Question:
Calculation of future value of money considering time value.

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What is the ending balance from an initial deposit of \$5,000 at 14%
compounded monthly for 4 years?

Solution:
Initial deposit =                                          \$5,000        =P

I=                                         14%                         Nominal rate
n=                                          12
t=                                           4

r = Effective rate for the entire
period =                                                   74.50%

So ending balance =                                                    \$

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