Question

​(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:

1. The amount of money in Theodore Logan​ III's account at the end of 10 years will be?
2. The amount of money in Vernell Coles account at the end of 3 years will be?
3. The amount of money in Tina Elliot account at the end of 5 years will be?
4. The amount of money in Wayne Robinson account at the end of 3 years will be?
5. The amount of money in Eunice Chung account at the end of 6 years will be?
6. The amount of money in Kelly Cravens account at the end of 5 years will be?

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 1

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