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As I've mentioned in past columns, there's a growing trend for angel investors to come together and invest as a fund. Typically, these funds make investments ranging from $100,000 to $500,000 at one time and occasionally are supplemented with private investments from individual angels.
Compounding affects both present value and future value. In Table 2 we see that on December 31, 2014, Account #4âthe account that is compounded monthly âhas the highest future value: $12,697.35. When interest is deposited monthly, the account earns interest on interest more often.