A: amount = 5000(1.045)^14 = ....
b: amount = 6000(1.01025)^20 = ....
Investment A: $5,000 invested for 7 years compounded semiannually at 9%.
Investment B: $ 6,000 invested for 5 years compounded quarterly at 4.1%.
Find each total for each investment and determine which investment results are greater.
3 answers
A(t) = P (1 + r/n)^nt
P = 5000, t = 7, r = .09, n = 2
A(7) = 5000 (1 + .09/2)^2(7)
A(7) = 5000 (1 + 0.045)^14
A(7) = 5000 (1.045)^14
A(7) = $9259.72 interest
5000 + 9259.72 = 14259.72
A(t) = P (1 + r/n)^nt
P = 6000, t = 5, r = .0410, n = 4
A(7) = 6000 (1 + .0410/4)^4(5)
A(7) = 6000 (1 + 0.01025)^20
A(7) = 6000 (1.01025)^20
A(7) = $7357.47 interest
6000 + 7357.47 = 13357.47
check my math
I am not a tutor
P = 5000, t = 7, r = .09, n = 2
A(7) = 5000 (1 + .09/2)^2(7)
A(7) = 5000 (1 + 0.045)^14
A(7) = 5000 (1.045)^14
A(7) = $9259.72 interest
5000 + 9259.72 = 14259.72
A(t) = P (1 + r/n)^nt
P = 6000, t = 5, r = .0410, n = 4
A(7) = 6000 (1 + .0410/4)^4(5)
A(7) = 6000 (1 + 0.01025)^20
A(7) = 6000 (1.01025)^20
A(7) = $7357.47 interest
6000 + 7357.47 = 13357.47
check my math
I am not a tutor
30000(e.055.5)