Question

If $300 is invested at 6% compounded

what is the amount after 5 years? how much is earnd?

If it is compounded annually what is the amount?

If it is compounded quarterly what is the amount?

If it is compounded monthly what is the amount?

Answer 1

1) If it is compounded annually what is the amount after 5 years=300*(1+6%)^5=401.47

If it is compounded annuallyhow much is earnd=401.47-300=101.47

2)

If it is compounded quarterly what is the amount after 5 years=300*(1+(6%/4))^(5*4)=404.06

If it is compounded quarterly how much is earnd=404.06-300=104.06

3)

If it is compounded monthly what is the amount after 5 years=300*(1+(6%/12))^(5*12)=404.66

If it is compounded monthly how much is earnd=404.66-300=104.66