Use the diagram to answer the questions below.
1 answer:
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Given:
P₀ = $1000, the principal
r = 2% = 0.02, the APR
Let the duration be 1 year
n = number of compounding intervals per year.
The value after 1 year is
The following table shows the results obtained from the calculator.
n A
------ ------------------
1 1020.00000
4 1020.15050
12 1020.18436
52 1020.19742
365 1020.20078
P₀ = $1000, the principal
r = 2% = 0.02, the APR
Let the duration be 1 year
n = number of compounding intervals per year.
The value after 1 year is
The following table shows the results obtained from the calculator.
n A
------ ------------------
1 1020.00000
4 1020.15050
12 1020.18436
52 1020.19742
365 1020.20078