Calculate the future value of the following:

Question

o $5,000 compounded annually at 6% for 5 years
o $5,000 compounded semiannually at 6% for 5 years
o $5,000 compounded quarterly at 6% for 5 years
o $5,000 compounded annually at 6% for 6 years
• Answer the following: What conclusions can be drawn about the frequency of compounding interest? What conclusions can be drawn about the length of time an amount is compounding?
•

Please help, as I'm at a loss here.
Thanks for your help

Answer 1

The first answer is 5000*(1.06)^5
The second answer is 5000(1.03)^10
The third answer is 5000*(1.015)^20
The fourth answer is 5000*(1.06)^6

Do the numbers and draw your own conclusions.

Answer 2

$5,000 compounded semiannually at 6% for 5 years

Answer 3

Compute the amount that a $15,000 investment today would accumulate at 9% (compound interest) by the en of 6 years.