Question

Four different accounts are described below. Order the accounts according to their values after 20 years, from greatest to least.
1.You deposit 1500$ in an account that earns 5% annual interest compounded quarterly.
2. You deposit 1500$ in an account that earns 6% annual interest compounded monthly
3. You deposit 1400$ in an account that earns 9% annual interest compounded daily
4. You deposit 1000$ in an account that earns 10% annual interest compounded monthly

Answer 1

I'll do the 2nd, you do the others.

2.
i = .06/12 = .005
n = 20*12 = 240

amount = 1000(1 + .005)^240
= 1000(1.005)^240
= 1000(3.310204...)
= $ 3310.20

Answer 2

1. v = 1500 [1 + (.05 / 4)]^(20 * 4)

2. v = 1500 [1 + (.06 / 12)]^(20 * 12)

3. v = 1400 [1 + (.09 / 365)]^(20 * 365)

4. v = 1000 [1 + (.10 / 12)]^(20 * 12)

Answer 3

No incorrect