A = P [ 1 + r / n ] ^ n.t
where A = Total amount
P = Principal amount
r = annual interest rate
n = number of times compounded per year
t = time in years
Answer 1 a ) 6% compounded annually for 5 years
P= $350 , r = 6% , n= 1 , t =5
A = 350 [ 1 + 0.06 / 1 ] ^ 1.5
A = 350 . 1.06 ^ 5
A = 350 . 1.338226
A = 468.38
Answer 1b. ) 6% compounded semiannually for 5 years.
P= $350 , r = 6% , n= 2 , t =5
A = 350 [ 1 + 0.06 / 2 ] ^ 2.5
A = 350 . 1.03 ^ 10
A = 350 . 1.343916
A = 470.37
Answer 1c ) 6% compounded quarterly for 5 years.
P= $350 , r = 6% , n= 4 , t =5
A = 350 [ 1 + 0.06 / 4 ] ^ 4.5
A = 350 . 1.015 ^ 20
A = 350 . 1.346855
A = 471.40
Answer 1 d ) 6% compounded monthly for 5 years.
P= $350 , r = 6% , n= 12 , t =5
A = 350 [ 1 + 0.06 / 12 ] ^ 12.5
A = 350 . 1.005 ^ 60
A = 350 . 1.34855
A = 472.10
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