SOLUTION: SAVINGS Mr. Harris saves $20,000 in a money-market account at an interest rate of 5.2%. a. Determine the value of his investment after 10 years if interest is compounded quarter

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: SAVINGS Mr. Harris saves $20,000 in a money-market account at an interest rate of 5.2%. a. Determine the value of his investment after 10 years if interest is compounded quarter      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1158167: SAVINGS Mr. Harris saves $20,000 in a money-market account at an interest
rate of 5.2%.
a. Determine the value of his investment after 10 years if interest is
compounded quarterly.
b. Determine the value of his investment after 10 years if interest is
compounded continuously.
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
P=Po20000(1+(.052/4)^40=$33528.01. Round at the end.
P=Poe^(.052*10)=20000e^(.52)=$33640.55