SOLUTION: An amount of K27, 600 is invested for nine years in a credit union which pays an annual interest rate of 5%. Find the accumulated value after 6 years if interest is compounded; A)

Question 1105284: An amount of K27, 600 is invested for nine years in a credit union which pays an annual interest rate of 5%. Find the accumulated value after 6 years if interest is compounded;
A) Annually
B) Semi-annually
C) Quarterly
D) Monthly
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 is the number of compoundings per year, and t the number of years.
a. 27600(1+.05/1)^6=K36,986.64, Note: don't round intermediate steps, but round only at end.
b. 27600(1+0.05/2))^12=K37,118.93
c. 27600(1+.0125)^24=K37186.89
d. 27600(1+.05/12))^72=K37232.89
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