Question

Prove how to get future value formula. FV=p(1+r/m)^mn

Answer 1

Break the yearly rate r into its monthly rate r/m
There are nm such months in total
After first month
FV(1) = P (1+r/m)
After second month FV(2) = FV(1) (1+r/m) or
FV(2) = P (1+r/m)^2 and so on

at the end of total period, mn months

FV(mn) = P (1+r/m)^mn