SOLUTION: Find the amount after 4 years if $800 is invested at 8% compounded: a) Annually Amount = $_________ b) Semiannually Amount= $__________ c) Quarterly Amount= $____

Algebra ->  Finance -> SOLUTION: Find the amount after 4 years if $800 is invested at 8% compounded: a) Annually Amount = $_________ b) Semiannually Amount= $__________ c) Quarterly Amount= $____      Log On


   

Question 1040598: Find the amount after 4 years if $800 is invested at 8% compounded:
a) Annually
Amount = $_________

b) Semiannually
Amount= $__________

c) Quarterly
Amount= $__________

d) Monthly
Amount= $___________
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
a. Po(1+0.08/1)^4. The one is the number of compoundings a year, and 4 is the total number of compoundings in the interval. It is $1088.39
b. Po(1+0.08/2)^8. The interest rate is halved inside, but the total number of compoundings have doubled. $1094.86. It should be a little more than annually and less than quarterly.
c. Po(1+(.08)/4)^16=$1098.23
d. Po(1+(.08)/12))^48=$1100.53