Compounded Interest (Present Value)

Compounded interest is when interest is immediately re-invested.
This is an example of a Geometric Sequence where a series of numbers are multipled by a fixed amount.


Annual Compounded

If you receive £50 in 3 years time what is this worth today if the interest rate is 6% with annual compounding?

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If you receive £50 in 185 days time what is this worth today if the interest rate is 6% with annual compounding?

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Semi-Annual Compounding

If you receive £50 in 3 years time what is this worth today if the interest rate is 6% with semi-annual compounding?
Semi-annual compounding means that the interest is calculated and re-invested every 6 months.

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Quarterly Compounded

If you receive £50 in 3 years time what is this worth today if the interest rate is 6% with quarterly compounding?

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Monthly Compounded

If you receive £50 in 3 years time what is this worth today if the interest rate is 6% with monthly compounding?

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Daily Compounded

If you receive £50 in 3 years time what is this worth today if the interest rate is 6% with daily compounding?

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