2 PVlargefracFV1Rnormalsizenhspace30pxR effective rate. PV is the current worth of a future sum of. In order to calculate the value of the investment after the period of 3 years annual compound interest formula will be used.
C Future sum.
Free financial calculator to find the present value of a future amount or a stream of annuity payments with the option to choose payments made at the beginning or the end of each compounding period. The general solution comes in this formula. In order to calculate the value of the investment after the period of 3 years annual compound interest formula will be used. P V I F 1 1 r n.