Question

assume that the initial deposit is $20000 and the nominal annual interest rate is 5.7%. Determine the amount in the account in 10 years if the interest is compounded as follows (round your answers to the nearest dollar):

(a) Annually: P=20000(1.057)^10

(b) Monthly:

(c) Weekly (assume all years have 52 weeks):

(d) Daily (assume all years have 365 days):

(e) Continuously: P=20000e^(0.057*10)

I need help with how to do b-d!
Thanks!

Answer 1

for multiple periods per year, just divide the interest rate and multiply the number of years.

(b) P = 2000(1+.057/12)^(12*10)

and similarly for other divisions of the year into multiple parts.