Question

We have an investment of 5000 $ 1-what will be the value of the investment after...

We have an investment of 5000 $
1-what will be the value of the investment after 5 years from 4.2% interest compounded continuously?

2-after five years , from 4.3% intereste compounded monthly?

3- what does this results tell you about the benefits of continuous compounding?

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
5A-1 FV CONTINUOUS COMPOUNDING If you receive $15,000 today and can invest it at a 6%...
5A-1 FV CONTINUOUS COMPOUNDING If you receive $15,000 today and can invest it at a 6% annual rate compounded continuously, what will be your ending value after 15 years? 5A-2 PV CONTINUOUS COMPOUNDING In 7 years, you are scheduled to receive money from a trust established for you by your grandparents. When the trust matures there will be $200,000 in the account. If the account earns 9% compounded continuously, how much is in the account today? 5A-3 FV CONTINUOUS COMPOUNDING...
What is the 7 year maturity value of a $5000 investment that earned 4.35% interest compounded...
What is the 7 year maturity value of a $5000 investment that earned 4.35% interest compounded quarterly for 3 years, and 6.0% interest compounded semi-annually for the final 4 years? (Be sure to include a “timeline” display).
Suppose we have an investment that earns interest compounded continuously and it takes 12 years for...
Suppose we have an investment that earns interest compounded continuously and it takes 12 years for an initial investment of 20,000 to grow to 80,000 under this investment. How long does it take for the same initial investment of 20,000 to grow to 60,000?
Find the accumulated value of an investment of $ 25,000 for 3 years at an interest...
Find the accumulated value of an investment of $ 25,000 for 3 years at an interest rate of 7% if the money is a. compounded​ semiannually b. compounded​ quarterly c. compounded monthly d. compounded continuously.
what is the Present value of a lump sum investment that will be worth $5000 at...
what is the Present value of a lump sum investment that will be worth $5000 at the end of eight years? assume an APR of 4% compounded daily
Which is larger after 5 years: an investment of $7000 earning 4% compounded monthly or an...
Which is larger after 5 years: an investment of $7000 earning 4% compounded monthly or an investment of $6500 earning 5% compounded continuously? Show your work to defend your answer.
1. You want to take a vacation in 4 years and feel you’ll need $8,500 to...
1. You want to take a vacation in 4 years and feel you’ll need $8,500 to do so. If you can earn 5% on your deposits, how much will you need to deposit in each of the next four years to have the needed amount? PMT = 1972.10058   2. What is the effective annual rate on a credit card that states that their APR is 21%, compounded monthly? 23.144% 3. What is the present value of $1,000 to be received...
You have a choice: you can keep $5000 under your mattress for the next 50 years,...
You have a choice: you can keep $5000 under your mattress for the next 50 years, or you can invest it in an account earning 5% interest compounded monthly for 50 years. Compare the amount after 50 years.
Use continuous compound interest to compute the value of an investment of​ $1,000 at the end...
Use continuous compound interest to compute the value of an investment of​ $1,000 at the end of 7 years at an annual rate of​ 9% (expressed in​ decimals), compounded continuously. A. ​$1877.51 B. ​$1877.61 C. ​$1877.91 D. ​$1877.41
Calculate the accumulated value of an investment of 1,250 after 8 years assuming the annual effective...
Calculate the accumulated value of an investment of 1,250 after 8 years assuming the annual effective rate of discount is 4% for the first 3 years, the annual nominal rate of interest compounded monthly 9% for the next 2 years and force of interest is 2.5% for the final 3 years. Answer to the nearest cent.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT