SOLUTION: John invested $20,000 in a 14 percent annual interest yielding project. Deduce the compound amount of the project after 6 years if interest is compounded (a) quarterly, (b) weekly
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Question 1085801: John invested $20,000 in a 14 percent annual interest yielding project. Deduce the compound amount of the project after 6 years if interest is compounded (a) quarterly, (b) weekly (c) thirdly (d) monthly (e) daily
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po(1+r/n)^nt, where r is the rate, n the number of compoundings per year, and nt the total number of compoundings.
20000(1+0.14/4)^24, because 24 compoundings quarterly in 6 years. Do the raising of the power first and round at the end. $45666.57
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weekly
20000*(1+(.14/52))^312=$46275.08
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thirdly
20000*(1+.14/3)^18=$45454.94
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monthly
20000*(1+.14/12)^72=$46102.63
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daily
20000*(1+0.14/365))^2190=$46319.88
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