Answer:
a) $20,771.76
b) $20,817.67
c) $20,484.80
d) $20,864.52
Step-by-step explanation:
<u>Compound Interest Formula</u>
where:
- A = final amount
- P = principal amount
- r = interest rate (in decimal form)
- n = number of times interest applied per time period
- t = number of time periods elapsed
<u>Part (a): semiannually</u>
Given:
- P = $15,000
- r = 5.5% = 0.055
- n = 2
- t = 6 years
Substitute the given values into the formula and solve for A:
<u>Part (b): quarterly</u>
Given:
- P = $15,000
- r = 5.5% = 0.055
- n = 4
- t = 6 years
Substitute the given values into the formula and solve for A:
<u>Part (c): monthly</u>
Given:
- P = $15,000
- r = 5.5% = 0.055
- n = 12
- t = 6 years
Substitute the given values into the formula and solve for A:
<u>Continuous Compounding Formula</u>
where:
- A = Final amount
- P = Principal amount
- e = Euler's number (constant)
- r = annual interest rate (in decimal form)
- t = time (in years)
<u>Part (d): continuous</u>
Given:
- P = $15,000
- r = 5.5% = 0.055
- t = 6 years
Substitute the given values into the formula and solve for A:
Learn more about compound interest here: