Question

Find the amount to which $300 will grow under each of the following conditions. Do not round intermediate calculations. Round your answer to the nearest cent.

(b) 8% compounded semiannually for 5 years $

(c) 8% compounded quarterly for 5 years $

(d) 8% compounded monthly for 5 years $

Answer 1

(b)
	Future Value		=	Present Value x (1+i)^n			Where,
			=	$        300	x (1+0.04)^10		i	8%/2	=	0.04
			=	$ 444.07			n	5*2	=	10
(c)
	Future Value		=	Present Value x (1+i)^n			Where,
			=	$        300	x (1+0.02)^20		i	8%/4	=	0.02
			=	$ 445.78			n	5*4	=	20
(d)
	Future Value		=	Present Value x (1+i)^n			Where,
			=	$        300	x (1+0.006667)^60		i	8%/12	=	0.006667
			=	$ 446.96			n	5*12	=	60