Question

If $500 is invested at an interest rate of 5.5% per year, find the amount of the investment at the end of 15 years for the following compounding methods. (Round your answers to the nearest cent.) A.) Annually: $ B.) Semiannually: $ C.) Quarterly: $ D.) Continuously: $

Answer #1

Formula for compound interest is:

A= P(1+r/n)^nt

Where,

A= final amount

P= principal (here 500)

R= rate of interest (here 0.055)

n= no. of times the compounding is done in an year

t= time in years (here 15)

A. Since money is compounded annually in this part:

n=1

A= 500* (1+0.055/1)^(1*15)

= $1116.24

B. Since money is compounded semiannually

n=2

A= 500*(1+ 0.055/2)^(15*2)

= $1128.301

C. Since money is compounded quarterly

n=4

A= 500*(1+0.055/4)^4*15)

=$1134.55

D. As compounding is done continuously

Amount= Principal* (e^r*t)

Where,

r= rate(here 0.055)

t= time(here 15)

Amount = 500e^(0.055*15)

= $1140.94

If $500 is invested at an interest rate of 3.5% per year, find
the amount of the investment at the end of 10 years for the
following compounding methods. (Round your answers to the nearest
cent.)
(a) Annually
？$
(b) Semiannually
？$
(c) Quarterly
？$
(d) Continuously
？$

Find the interest earned on $25000.00 invested for 6 years at
4.5% interest compounded as follows.
a. Annually -Compounding annually, the interest earned is
b. Semiannually (twice a year) -Compounding semiannually, the
interest earned is
c. Quarterly -Compounding quarterly, the interest earned is
d. Monthly- Compounding monthly, the interest earned is
e. Continuously- . Compounded continuously, the interest earned
is

If 8200 dollars is invested at an interest rate of 7 percent
per year, find the value of the investment at the end of 5 years
for the following compounding methods.
(a) Annual:
(b) Semiannual:
(c) Monthly:
(d) Daily:

1How much should be invested now at 5.5% simple interest if
$8103 is needed in 2 years?
2.Determine the amount due on the compound interest loan. (Round
your answers to the nearest cent.)
$13,000 at 4% for 10 years if the interest is compounded in the
following ways.
(a) annually
$
(b) quarterly
$

If $35,500 is invested at 6.8% for 30 years, find the future
value if the interest is compounded the following ways. (Round your
answers to the nearest cent.)
(a) Semiannually
(b)monthly
(c)daily (n=360)
(d) continuously

Jeffrey invested money in a mutual fund for seven years. The
interest rate on the mutual fund was 5% compounded quarterly for
the first three years and 3% compounded semi-annually for the next
four years. At the end of the seven years, Jeffrey's mutual fund
had accumulated to $35,198.50.
a. Calculate the amount that was in the mutual
fund after the first three years when the interest rate
changed.
Round to the nearest cent
b. Calculate the amount that was...

Predict the expression that represents the total after
a) $100 is invested at 6% interest, compounded semi-annually,
for 10 years.
b) $100 is invested at 6% interest, compounded semi-annually,
for 15 years.
c) $100 is invested at 6% interest, compounded quarterly, for
1 year.
d) $100 is invested at 6% interest, compounded quarterly, for
20 years.
Enter the expressions into a calculator. Round answers to the
nearest cent.

Edgar accumulated $5,000 in credit card debt. If the interest
rate is 20% per year, and he does not make any payments for 3
years, how much will he owe (in dollars) on this debt in 3 years by
each method of compounding? (Simplify your answers completely.
Round your answers to the nearest cent.) (a) compound quarterly $
(b) compound monthly $ (c) compound continuously $

Effects of different compounding periods on future
values of $1,000 invested at an 15% nominal interest rate.
Initial Amount
Compounding periods
Effective annual rate
FV at end of 1 year
$1,000
Annually
$1,000
Semiannually
$1,000
Quarterly
$1,000
Monthly
$1,000
Daily (365 days)
question here

When interest is compounded continuously, the amount of money
increases at a rate proportional to the amount S present
at time t, that is,
dS/dt =
rS,
where r is the annual rate of interest.
(a)
Find the amount of money accrued at the end of 8 years when
$5000 is deposited in a savings account drawing 5
3
4
% annual interest compounded continuously. (Round your answer to
the nearest cent.)
$
(b)
In how many years will the...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 8 minutes ago

asked 16 minutes ago

asked 18 minutes ago

asked 25 minutes ago

asked 41 minutes ago

asked 48 minutes ago

asked 52 minutes ago

asked 56 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago