Use the compound interest formula A=P(1+(r/n))^n*t and A=Pe^rt to solve this exercise

Find the accumulated value of an investment of 13030 for 3 years at an annual interest rate of 5.3% if the money is:

compounded semiannually
compounded monthly
compounded quarterly
compounded continuously

Question

Use the compound interest formula A=P(1+(r/n))^n*t and A=Pe^rt to solve this exercise

Find the accumulated value of an investment of 13030 for 3 years at an annual interest rate of 5.3% if the money is:

compounded semiannually 
compounded monthly 
compounded quarterly
compounded continuously

anonymous · Answer

which one you want to do?

anonymous · Answer

Do both formulas work?

anonymous · Answer

I guess the first one than

anonymous · Answer

$$Pe^{rt} $$  is for continuous compounding 
i.e for the last one

anonymous · Answer

$$P=13030, r = .053, t=3$$

anonymous · Answer

so the last one will be 
$$13030\times e^{.053\times 3}$$ and a calculator

anonymous · Answer

will the first one be 13030(1+.053/12))^3*12

anonymous · Answer

i would use this http://www.wolframalpha.com/input/?i=13030e^%28.053*3%29

anonymous · Answer

no that would be monthly

anonymous · Answer

wait yeah thats what I meant sorry haha

anonymous · Answer

So my answer is 15270.22?

anonymous · Answer

be careful how you put it in a calculator
hold on let me check

anonymous · Answer

what would the t and n be for the first one than

anonymous · Answer

ok

anonymous · Answer

yeah that is right
for monthly you  have the right answer

anonymous · Answer

semi annually means twice a year so $n=2$

anonymous · Answer

in all these problems $t=3$ since it says "three years"

anonymous · Answer

what would r be for quarterly and semiannually

anonymous · Answer

$r$ and $t$ are fixed for this problem
only $n$ varies

anonymous · Answer

I meant n sorry

anonymous · Answer

3 years at an annual interest rate of 5.3% 
$$r=.053,t=3$$

anonymous · Answer

so for quarterly is n=4

anonymous · Answer

compounded semiannually $n=2$
 compounded monthly $n=12$
 compounded quarterly $n=4$

anonymous · Answer

right

anonymous · Answer

you can copy and paste right in to worfram , knock 'em out quick

anonymous · Answer

so how would you do it for compounding continuously than?

anonymous · Answer

$n=2$ http://www.wolframalpha.com/input/?i=+13030%281%2B.053%2F2%29%29^%283*2%29

anonymous · Answer

$n=4$ http://www.wolframalpha.com/input/?i=+13030%281%2B.053%2F4%29%29^%283*4%29

anonymous · Answer

continuous was the very first one we did 
all the way up

anonymous · Answer

http://www.wolframalpha.com/input/?i=13030e^%28.053*3%29