Question

Use the compound interest formulas upper a equals upper p left parenthesis 1 plus startfraction r over n endfraction right parenthesis superscript nt and upper a equals pe superscript rt to solve the problem given. round answers to the nearest cent. find the accumulated value of an investment of $ 10 comma 000 for 3 years at an interest rate of 4.5 % if the money is
a. compounded​ semiannually;


b. compounded​ quarterly;


c. compounded monthly


d. compounded continuously.

Answer 1

Answer:

a. A=$11,428.25

b. A=$11,436.74

c. A=$11,442.48

d. A=$14,445.37

Step-by-step explanation:

The compound interest formula is:

$A=P(1+\frac{r}{n})^{nt}$

Where:

P=10,000

t= 3 years

r=0.045

n = periods compounded in a year.

a. compounded​ semiannually:

$A=10,000(1+\frac{0.045}{2})^{2*3}\\A=11,428.25$

b. compounded​ quarterly:

$A=10,000(1+\frac{0.045}{4})^{4*3}\\A=11,436.74$

c. compounded monthly:

$A=10,000(1+\frac{0.045}{12})^{12*3}\\A=11,442.48$

d. compounded continuously:

The continously compounded interest equation is:

$A=10,000e^{(0.045*3)}\\A=14,445.37$