Question
what formulas do i use for this:
Investments Suppose $10,000 is invested at an annual rate of 5% for 10 years. Find the future value if interest is compounded as follows.
A) Annually
B) Quarterly
C) Monthly
D)Daily (365 days)
A) 10000*(1+.05)^10
B) 10000*(1+.05/4)^40
C) 10000*(1+.05/12)^120
D) 10000*(1+.05/365)^3650
D alt) 10000*e^(.05*10)
Investments Suppose $10,000 is invested at an annual rate of 5% for 10 years. Find the future value if interest is compounded as follows.
A) Annually
B) Quarterly
C) Monthly
D)Daily (365 days)
A) 10000*(1+.05)^10
B) 10000*(1+.05/4)^40
C) 10000*(1+.05/12)^120
D) 10000*(1+.05/365)^3650
D alt) 10000*e^(.05*10)
Answers
Reza
A= P(1+r/n)^n*t
for instance A=10000(1+0.05/1)^1*10
A= 10000(1.05)^10
a= 10000(1.628895)
A= 16288.95
for instance A=10000(1+0.05/1)^1*10
A= 10000(1.05)^10
a= 10000(1.628895)
A= 16288.95