a) annually
A = p(1+ r)^t
A = 32500(1+ 0.069)^3
A = 32500(1 .069)^3
A = $39,702.37
b) semiannually
A = p(1+ r/n)^tn
A = 32500(1 + 0.069/2)^(3*2)
A = 32500(1.0345)^6
A = $39,835.14
c) quarterly
A = p(1+ r/n)^tn
A = 32500( 1+ 0.069/4)^(3*4)
A = 32500(1.01725)^12
A = $39,903.94
d) Monthly
A = p(1+ r/n)^tn
A = 32500(1 + 0.069/12)^(12*3)
A =32500(1.00575)^36
A = $ 39,950.74
e) Daily
A = p(1+ r/n)^tn
A = 32500(1+ .069/365)^(3*365)
A = $39,973.65
f) every minute
A = p(1 + r/n)^tn
A= 32500( 1+ 0.069/525600)^(525600*3)
A = $39,974.43
g) Continuously
A = pe^rt
A = 32500e^(0.069*3
A = 32500e^0.207
A = $ 39,974.43
h) Simple (not compound)
A = p(1+ r)^t
A = 32500( 1+ 0.069)^3
A = 32500( 1.069)^3
A = $ 39,702.37
If $32,500 is invested at 6.9% for 3 years. Find the future value if the interest is compounded the following ways:
annually, semiannually, quarterly, monthly, daily, every minute (N-525,600), continuously, and simple (not compounded. I don't know to set this up or how to start it. If you can help Thank you and it is appreciated.
4 answers
in each case you divide the rate by the annual compounding frequence,
and multiply the years by that annual compouding frequency
e.g. if compounded quarterly, the annual compounding frequencey is 4
I will do that one, you try the others.
6.9 %>
compounded quarterly
i = .069/4 = .01725
n = 3(4) = 12
Amount = 32500( 1 + .01725)^12
= 32500 (1.01725)^12 = $39,903.94
for continuous, you use the formula
amount = principal x e^(rate x time)
= 32500 e^(.069(3))
= $39,974.43
For simple interest:
amount = 32500 + 32500(.069)(3) = $39,227.50
Give the others a good try.
and multiply the years by that annual compouding frequency
e.g. if compounded quarterly, the annual compounding frequencey is 4
I will do that one, you try the others.
6.9 %>
compounded quarterly
i = .069/4 = .01725
n = 3(4) = 12
Amount = 32500( 1 + .01725)^12
= 32500 (1.01725)^12 = $39,903.94
for continuous, you use the formula
amount = principal x e^(rate x time)
= 32500 e^(.069(3))
= $39,974.43
For simple interest:
amount = 32500 + 32500(.069)(3) = $39,227.50
Give the others a good try.
There is typo for simple interest
Simple interest. =Prt
= 32500(.069)(3)
=$6,727.50
Amount. = p + interest
A = $ 32500 + $6727.50
A = 39,227.50
Simple interest. =Prt
= 32500(.069)(3)
=$6,727.50
Amount. = p + interest
A = $ 32500 + $6727.50
A = 39,227.50
Thank you all so much for the time you give, to help others. I appreciate it so much.