SOLUTION: use the compound interest formulas A=P(1+r/n)^nt and A=Pe^rt to solve the problem given round answers to the nearest cent. Find the accumulated value of an investment of $20,000

Question 816312: use the compound interest formulas A=P(1+r/n)^nt and A=Pe^rt to solve the problem given round answers to the nearest cent.
Find the accumulated value of an investment of $20,000 for 3 years at an interest rate of 5.5% if the money is A. compound semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously.
Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!

 

Hi,

a) A=20000(1+.05/2)^(2*3)  |P = $20,000,r= .05, t = 3yr  and n = 2

b) A=20000(1+.05/4)^(4*3)  |P = $20,000,r= .05 , t = 3yr and n = 4

c)  A=20000(1+.05/12)^(12*3)  |P = $20,000,r= .05 , t = 3yr and n = 12

2)  A=20000e^(.05*3 )  |P = $20,000,r= .05 , t = 3yr, compounded continuously 

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