(Compound interest with non-annual periods) Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period:
Account Holder |
Amount |
Annual |
Compounding |
Compounding |
|||||
Deposited |
Interest Rate |
Periods Per Year (M) |
Periods (Years) |
||||||
Theodore Logan III |
$ 900.00 |
12% |
4 |
10 |
|||||
Vernell Coles |
$ 96,000.00 |
12% |
2 |
3 |
|||||
Tina Elliot |
$ 9,000.00 |
10% |
12 |
5 |
|||||
Wayne Robinson |
$ 122,000.00 |
12% |
1 |
3 |
|||||
Eunice Chung |
$ 31,000.00 |
16% |
3 |
6 |
|||||
Kelly Cravens |
$ 13,000.00 |
10% |
6 |
5 |
Answer:
In all these cases, we need to compute the future values which shall be computed by using the below formula: |
Future value = Present value ( 1 + r )^{n}
a. $ 900 x ( 1 + 0.12/ 4)^{4 x 10}
= $ 2935.83 Approximately
b. $ 96000 x ( 1 + 0.12 / 2)^{2 x 3}
= $ 136177.8 Approximately
c. $ 9000 x ( 1 + 0.10/ 12)^{12 x 5}
= $ 14807.78 Approximately
d. $ 122000 x ( 1 + 0.12 / 1 )^{1 x 3}
= $ 171401.2 Approximately
e. $ 31000 x ( 1 + 0.16 / 3 )^{3 x 6}
= $ 78985.36 Approximately
f. $ 13000 x ( 1 + 0.10 / 6 )^{6 x 5}
= $ 21345.23 Approximately
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