How much money will I have if I invest $1000 at 5% annual interest for ten years given the compounding?Round the answer to the nearest cent.
find anually, continusly and monthly

Question

How much money will I have if I invest $1000 at 5% annual interest for ten years given the compounding?Round the answer to the nearest cent. 
 find anually, continusly and monthly

rulnick · Answer

$1000(1.05)^10 = $1628.89

anonymous · Answer

i got 16,43.62 for anually and 1648.72 contiunusly and 10509.45 for montly but dont know if they are right

rulnick · Answer

answer above is for initial question (annual compounding)

anonymous · Answer

so are my answeres wrong

rulnick · Answer

I think the first answer (for annual) is a little high.  Did you use 1000(1.05)^10?

rulnick · Answer

For monthly it would be $1000(1+0.05/12)^120 = $1647.01.

rulnick · Answer

OK?

anonymous · Answer

wouldnt it be continusly

rulnick · Answer

No, continuously I haven't done yet.  Two down, one to go.  Do you understand the first two?

anonymous · Answer

yes

rulnick · Answer

The continuous one is $1000e^0.5 = $1648.72.