Answer:
Annual $54,624.85
Semiannual $54,787.62
Monthly $54,927.75
Daily $54,955.35
Continuously $54,955.35
Explanation:
If 42,800 dollars are invested at an interest rate of 5 percent per year, to find the value of the investment at the end of 5 years for the following compounding methods, the following calculations must be performed:
Annual $54,624.85
42,800 (1 + 0.05 / 1)^5x1 = X = 54,624.85
Semiannual $54,787.62
42,800 (1 + 0.05 / 2)^5x2 = X = 54,787.62
Monthly $54,927.75
42,800 (1 + 0.05 / 12)^5x12 = X = 54,927.75
Daily $54,955.35
42,800 (1 + 0.05 / 365)^5x365 = X = 54,955.35
Continuously $54,955.35
42,800 (1 + 0.05 / 365)^5x365 = X = 54,955.35