SOLUTION: Calculate the amount of money you will have in an account at the end of the five years with an initial deposit of $5,000 and a 10% interest rate if interest is compounded a.

Question 641032: Calculate the amount of money you will have in an account at the end of the five years with an initial deposit of $5,000 and a 10% interest rate if interest is compounded

a. Annually
b. Semi-Annually
c. Quarterly

Answer by cta1987(8) (Show Source): You can put this solution on YOUR website!
A=P(1+r/n)^nt
P=5000
R=0.10
t=5 years
A.annaully=1 time per year
A=5000(1+0.10/1)^5*1
A=5000(1+0.10)^5
A=5000(1.10)^5
A=5000(1.61051)
A=8052.55
B.semiannually=2 times per year
A=5000(1+0.10/2)^5*2
A=5000(1+0.05)^10
A=5000(1.05)^10
A=5000(1.628894627)
A=8144.47
C.quarterly=4 times per year
A=5000(1+0.10/4)^5*4
A=5000(1+0.025)^20
A=5000(1.025)^20
A=5000(1.63861644)
A=8193.08
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