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Helen [10]
3 years ago
8

Compare the investment below to an investment of the same principal at the same rate compounded annually. ​

Mathematics
2 answers:
Margarita [4]3 years ago
7 0

9514 1404 393

Answer:

  compounding 6 times per year earns $458.36 more interest over 20 years

Step-by-step explanation:

We can compute the value of the investment for the different compounding schemes. The applicable formula is ...

  A = P(1 +r/n)^(nt)

where P is the principal, r is the annual rate, n is the number of interest periods per year, and t is the number of years.

<u>Compounded 6 times per year</u>:

  A = $3000(1 +.07/6)^(6·20) ≈ $12,067.41

<u>Compounded 1 time per year</u>:

  A = $3000(1.07)^20 ≈ $11,609.05

Marrrta [24]3 years ago
5 0

Answer:

Can you please describe the problem more detailed pls?

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Step-by-step explanation:

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