SOLUTION: ou deposit P200 in an account earning 5% compound interest for 3 years. Find the future value and the interest earned for each of the following compounding frequencies. Use the Ban

Question 1181790: ou deposit P200 in an account earning 5% compound interest for 3 years. Find the future value and the interest earned for each of the following compounding frequencies. Use the Bankers' Rule for daily compounding.

Frequency Future Value Interest Earned
Annually:
Semiannually:
Quarterly:
Monthly:
Daily:
Found 2 solutions by Boreal, ikleyn:
Answer by Boreal(15235)   (Show Source): You can put this solution on YOUR website!
annually is P=200(1+0.05/1)^3=P231.53
semi is P=200(1+(.05/2))^6, less to compound but more times compounded,=P231.94
quarterly will be slightly more or P=200(1+(.05/4))^12=P232.15
monthly is P=200*(1+(.05/12))^36=P232.29
Round everything at the end.
daily use 360 so P=(1+(.05/360))^1080=P232.36

Answer by ikleyn(52777)   (Show Source): You can put this solution on YOUR website!
.

To see many other similar (and different) solved problems on compounded interest accounts, look into the lesson
    - Compounded interest percentage problems
in this site.

Learn the subject from there.

RELATED QUESTIONS
You deposit $300 in an account earning 8% compound interest for 3 years. Find the future... (answered by ikleyn)
Find the future value for the following scenario, where m is the periodic deposit and r... (answered by Theo)
You deposit $10,000.00 in a account that pays 5% interest compound quarterly. A) Find... (answered by Theo)
if you deposit $2,000 in an account earning 3% interest compound monthly, how much will... (answered by rfer)
ou deposit $5000 at the beginning of each year into an account earning 7% interest... (answered by ikleyn)
You receive a $165,000 inheritance from your parents and invest it in a savings plan... (answered by Theo)
An account earned $42 in interest for a deposit earning 3.5% simple interest for 270... (answered by fractalier)
if you deposit $5,000.00 into an account each year, earning 5% interest compound... (answered by rfer)
You deposit $10,000 in an account that pays 5.5% interest compounded quarterly. A.... (answered by greenestamps)