If 7000 dollars is invested in a bank account at an interest rate of 7 per cent per year.

Question

A) Find the amount in the bank after 6 years if interest is compounded annually?

B) Find the amount in the bank after 6 years if interest is compounded quaterly?

C) Find the amount in the bank after 6 years if interest is compounded monthly?

D) Finally, find the amount in the bank after 6 years if interest is compounded continuously?

A=?
B=?
C=?
D=?

Thanks again guys!

Answer 1

B)
compounded quarterly
----> i = .07/4 or .0175, and n = 6(4) or 24
amount = 7000(1.0175)^24
= $ 10,615.10

Do A and C the same way

D
amount = 7000 e^(6(.07))
= $ 10,653.73

Answer 2

$4000 is invested at 9% compounded quarterly. In how many years will the account have grown to $14,500? Round your answer to the nearest tenth of a year

Answer 3

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