Answer:
a) $3,571.02
b) $3,572.9
c) $3,573.74
Step-by-step explanation:
Data provided in the question:
p = $3000,
r = 3.5%,
t = 5 years
a) quarterly
number of periods in a year, n = 4
Interest rate per period = 3.5% ÷ 4 = 0.875%
Now,
A = total amount
n = number of times compounded per year
on substituting the respective values, we get
A = 3000 ×
A = 3000 × [/tex]\cdot { 1.00875 } ^ { 20 }[/tex]
A = 3000 × 1.19034
A = $3,571.02
b) monthly
number of periods in a year, n = 12
Now,
A =
on substituting the respective values, we get
A = 3000 ×
A = 3000 × [/tex]\cdot { 1.002917} ^ { 60 }[/tex]
A = 3000 × 1.190967
A = $3,572.9
c) continuously
A =
on substituting the respective values, we get
A = 3,000 ×
or
A = 3,000 ×
or
A = 3,000 × 1.1912
or
A = $3,573.74