### 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?

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

#### 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.

#### Quarterly Compounded

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

#### Monthly Compounded

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

#### 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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