SOLUTION: Here I have a three part question I need help with: A. If an investment of $100 were made in the year the Declaration of Independence was signed(1776), and if it earned 3% compo

Question 491898: Here I have a three part question I need help with:
A. If an investment of $100 were made in the year the Declaration of Independence was signed(1776), and if it earned 3% compounded quarterly, how much would it be worth in 2016?
B. Discuss the effect of compounding interest monthly, daily, and continuously, on the $100 investment.
C. How do I graph the growth of the investment on a Ti-83.
Any help would be appreciated. I am mainly concerned with finding the answer to A. I got an answer, but it doesn't seem anywhere near right.
For the first part, I got FV=100(1+0.075)^960=1.4194?
Answer by ccs2011(207) (Show Source): You can put this solution on YOUR website!
You are very close, you set up the formula correctly, however, i think you just forgot a zero in the (.075) part.
--> 0.03/4 = 0.0075
--> FV = 100(1+.0075)^960 = 130,392.50
-------------------------------------------------
For part B) mainly the idea is the more you compound it, the more you will earn within the same time period. If you earn interest every month, then you are able to reinvest that interest monthly. If you earn daily, then you reinvest daily and over say a year you would have earned more total interest than had you earned monthly interest.
---------------------------------------------------
For part C), go to the "Y =" button and enter the above function for FV from part A) but instead of putting 960, put 4x, then you can see the yearly progress. Then push the "Graph" button...if you look where x=240, y should be about 130,000.
You may need to adjust window size
RELATED QUESTIONS
If possible, I would love some help with this problem. I need to be able to solve it with (answered by IA)

I have worked on this problem for three days, and need some help please. The question (answered by stanbon)

I need help with an investment problem: Tom made an extra $5000 last year from a... (answered by jorel1380,josmiceli,ej_03)

I am not sure were this question belongs but I need an algebraic expression that give the (answered by rapaljer,Earlsdon)

How can I solve this and here is part of them problem the question and part of the answer (answered by mvvr1)

2 part question. I have the first part of the question. I need help with the 2nd part. (answered by Boreal)

Here is the problem: Walt made an extra $12,000 last year from a part-time job. He... (answered by Mathtut)

I need help with this word problem, I don't know how to set up the system of linear... (answered by oscargut)

Hello, I have a question I need help with. Your time is appreciated. Deloris invests in (answered by Alan3354)