Question

What is the accumulated value of

​$900

invested for

18

years at

5.7​%

p.a. compounded

​(a)​ annually?     ​(b)​ semi-annually?     ​(c)​ quarterly?    ​ (d)​ monthly?

​(a) The accumulated value is

​$nothing.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

​(b) The accumulated value is

​$nothing.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

​(c) The accumulated value is

​$nothing.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

​(d) The accumulated value is

​$nothing.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

Enter your answer in each of the answer boxes

Answer 1

​(a)​ annually  

Future Value = Present Value * (1+rate per period)^no. of periods

= 900*1.057^18

= 900*2.712375

= 2441.14

​(b)​ semi-annually

Future Value = Present Value * (1+rate per period)^no. of periods

= 900*(1+(.057/2))^(18*2)

= 900*2.750139

= 2475.13

    ​

(c)​ quarterly

Future Value = Present Value * (1+rate per period)^no. of periods

= 900*(1+(.057/4))^(18*4)

= 900*2.769754

= 2492.78

    ​

(d)​ monthly

Future Value = Present Value * (1+rate per period)^no. of periods

= 900*(1+(.057/12))^(18*12)

= 900*2.783115

= 2504.80