Use MATLAB to program the following: The future-value-of-money formula relates h

Question

Use MATLAB to program the following:

The future-value-of-money formula relates how much a current investment will be worth in the future, assuming a constant interest rate: FV PV x (1 I)N where FV is the future value, PV is the present value or investment 1 is the interest rate expressed as a fractional amount per compounding period-ie. 5% is expressed as 0.05, and N is the number of compounding periods. (a) Create an M-file function called future_value with three inputs: the investment (present value), the interest rate expressed as a fraction, and the number of compound periods (b) Use your function file to determine the value of a $1000 investment in 10 years, assuming the interest rate is 0.5% per month and the interest is compounded monthly.

Explanation / Answer

function FV = future_value(PV, I, N)

FV = PV*(1+I)^N;

end

b)

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