SOLUTION: $24,000 is deposited for 5 years in an account earning 7% interest. (Round your answers to two decimal places.) (a) Calculate the interest earned if interest is compounded semiann

Algebra ->  Finance -> SOLUTION: $24,000 is deposited for 5 years in an account earning 7% interest. (Round your answers to two decimal places.) (a) Calculate the interest earned if interest is compounded semiann      Log On


   

Question 1134161: $24,000 is deposited for 5 years in an account earning 7% interest. (Round your answers to two decimal places.)
(a) Calculate the interest earned if interest is compounded semiannually.
$

(b) Calculate the interest earned if interest is compounded quarterly.
$
(c) How much more interest is earned on the account when the interest is compounded quarterly?
$
Answer by josgarithmetic(39617) About Me  (Show Source):
You can put this solution on YOUR website!
(a)

Ending balance would be 24000%2A1.035%5E10, or you could compute the long way, period by period.

THe interest earned is 24000%2A1.035%5E10-24000.