Question
Determine the balance A for P dollars invested at rate R compounded N times per year for T years. Round each amount to the nearest cent
P= $1000, R=3% t=10 years
N=A
2=?
4=?
12=?
365=?
Compounded continuously=?
P= $1000, R=3% t=10 years
N=A
2=?
4=?
12=?
365=?
Compounded continuously=?
Answers
Henry
A = Po(1+r)^c
r = 0.03/n = 0.03/2 = 0.015 = Semi-annual % rate.
c = 2Comp./yr. * 10yrs. = 20 Compounding periods(N*t).
A = 1000(1+0.015)^20 = $1346.86.
Repeat for the remaining values of N.
r = 0.03/n = 0.03/2 = 0.015 = Semi-annual % rate.
c = 2Comp./yr. * 10yrs. = 20 Compounding periods(N*t).
A = 1000(1+0.015)^20 = $1346.86.
Repeat for the remaining values of N.