SOLUTION: If 25,000 dollars is invested at an interest rate of 9 percent per year, find the value of the investment at the end of 5 years
(a) Annual $______
(b) Semiannual$_____
(c) Dail
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(a) Annual $______
(b) Semiannual$_____
(c) Dail
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Question 1103276: If 25,000 dollars is invested at an interest rate of 9 percent per year, find the value of the investment at the end of 5 years
(a) Annual $______
(b) Semiannual$_____
(c) Daily$______
(d) Continuously $_______ Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! Compound interest formula
P=Po(1+r/n)^nt
Po=25000
r=0.09
t=5
n=1 for annual 25000(1+.09)^5=$38465.60
2 for semi annual 25000(1.045)^10=$38824.24
365 for daily $39205.63
P=Poe^rt for continuous compounding. $39207.80
