A $1,000 investment is made today. Calculate its maturity values for the six combinations of terms and annually compounded interest rates in the following table.

Annually Compounded

Refers to the process of calculating and adding interest to a principal sum once per year.

Maturity Values

The amount payable to the holder of a financial instrument at its maturity date, often the principal plus interest.

Investment

An asset or item acquired with the goal of generating income or appreciation.