Question

# ​(Compound interest with​ non-annual periods) Calculate the amount of money that will be in each of...

​(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

 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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