How to calculate FV in the following case-
10 year investment period, payment to be done in annual installments of $ 1,000 each. Interest rate is 5 % (compounded semi-annually).
What clicked in my mind is we regularly do sums where cash flow happens at every period, but what if the cash flow occurs annually and interest is compounded say, semi-annually.
I do not have a answer to this to check the solution.
I dont see such questions coming but if they appear you can use cashflow mode or effective annual yield
Not going exam point of view, rather I would be interested to get an solution. It would be great if you could highlight some steps to calculate the same.