SOLUTION: Suppose $17,000 is invested in an account with an APR of 5%. If the interest is compounded annually, how much interest is earned over the first 6 years? $ If the inte

Algebra ->  Finance -> SOLUTION: Suppose $17,000 is invested in an account with an APR of 5%. If the interest is compounded annually, how much interest is earned over the first 6 years? $ If the inte      Log On


   

Question 1148952: Suppose $17,000 is invested in an account with an APR of 5%.
If the interest is compounded annually, how much interest is earned over the first 6 years?
$

If the interest is compounded monthly, how much interest is earned over the first 6 years?
$

If the interest is compounded daily, how much interest is earned over the first 6 years?
$

If the interest is compounded continuously, how much interest is earned over the first 6 years?
$
Answer by ikleyn(52775) About Me  (Show Source):
You can put this solution on YOUR website!
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(a)  Future value = 17000%2A%281%2B0.05%29%5E6 = 17000%2A1.05%5E6.

      Use a calculator.



(b)  Future value = 17000%2A%281+%2B+0.05%2F12%29%5E%2812%2A6%29 = 17000%2A%281%2B0.05%2F12%29%5E72.

      Use a calculator



(c)  Future value = 17000%2A%281%2B0.05%2F365%29%5E%28365%2A6%29.

      Use a calculator.



(d)  Future value = 17000%2Ae%5E%280.05%2A6%29.    e = 2.71828.

      Use a calculator.

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    - Compound interest percentage problems
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