Question

A bank account was opened with a deposit of $2750 at an APR of 3.5% compounded one of the following ways. Find the amount in this account after 6 years with compounding of:

(round answers to nearest 100th)

annually: $

semi-annually: $

quarterly: $

monthly: $

weekly: $

daily: $

1000 times a year: $

10,000 times a year: $

Answer 1

r = .035/n where n = times per year

yearly gain = 1+r

final amount = 2750 * (1+r)^6n

so for example for 1000 times per year:
r = .035/1000 = .000035
1+r = 1.000035
and amount = 2750 *(1.000035)^6000
= $ 3392.60

Answer 2

gain per period = 1+r
not per year

gain per year = (1+r)^n

gain per 6 years = (1+r)^6n