If $1,500 is invested at 7%, find the value of the investment after 5 years if interest is compounded as follows. (Round your answers to the nearest cent.)
A) annually
B) Quarterly
C) Monthly
D) Weekly

Question

If $1,500 is invested at 7%, find the value of the investment after 5 years if interest is compounded as follows. (Round your answers to the nearest cent.)
A) annually
B) Quarterly
C) Monthly
D) Weekly

anonymous · Answer

using the present value equation
$$FV = PV(1+i)^n $$

for part a just plug in the numbers
1500(1+0.07)^5 = FV

anonymous · Answer

for quarterly you replace the n with n/2
for monthly you replace the n with n/12
and for weekly you replace the n with 7n/365

anonymous · Answer

I got $7,500.00252105 for annual. It said that wasn't the right answer. What am I doing wrong?

anonymous · Answer

it should be 2103.828

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like that