Question

Use the compound interest formulas and to solve the problem given. Round answers to the nearest cent.Find the accumulated value of an investment of for years at an interest rate of if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly; d. compounded continuously. a. What is the accumulated value if the money is compounded semiannually?

Answer 1

Okay here we have this:

Let's find one by one, replacing in the given formulas:

Semiannually:

`\begin{gathered} A=25000(1+(0.05)/(2))^(2\cdot6) \\ A=33622.22 \end{gathered}`

Quarterly:

`\begin{gathered} A=25000(1+(0.05)/(4))^(4\cdot6) \\ A=33683.78 \end{gathered}`

Monthly:

`\begin{gathered} A=25000(1+(0.05)/(12))^(12\cdot6) \\ A=33725.44 \end{gathered}`

Continuosly:

`\begin{gathered} A=Pe^(rt) \\ A=25000e^(0.05\cdot6) \\ A=33746.47 \end{gathered}`