Question

find the accumulated value of an investment of $20,000 for 6 years at an interest rate of 5.5% if the money is a. compounded semiannually b. compounded quarterly c. compunded monthly d. compounded continuously

Answer 1

\[A = P(1+\frac{i}{n})^{nt}\]
P = 20,000
i = .055
t = 6
n is number of times per year interest is credited

For compounding continuously n->infinity, use different equation
\[A = Pe^{it}\]