If 12500 dollars is invested at an interest rate of 10 percent per year, find the value of the investment at the end of 5 years for the following compounding methods.
(a) Annual:
Your answer is
(b) Semiannual:
Your answer is
(c) Monthly:
Your answer is
(d) Daily:
Your answer is
(e) Continuously:
Your answer is

Question

If 12500 dollars is invested at an interest rate of 10 percent per year, find the value of the investment at the end of 5 years for the following compounding methods.
(a) Annual:
Your answer is
(b) Semiannual:
Your answer is
(c) Monthly:
Your answer is
(d) Daily:
Your answer is
(e) Continuously:
Your answer is

anonymous · Answer

Annual: 12500 * (1 + .10/1)^(1 * 5)
Semiannual: 12500 * (1 + .10/4)^(4 * 5)
Monthly: 12500  * (1 + .10/12)^(12 * 5)
Daily: 12500 * (1 + .10/365)^(365 * 5)

Continuous: 12500 * e^(.10 * 5)
where e is approx. 2.718

anonymous · Answer

Thanks