SOLUTION: Find the accumulated value of an investment of $10,000 for 5 years at an interest rate of 5.5% if the money is
a. compounded semiannually
b. compounded quarterly
c. compounded m
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a. compounded semiannually
b. compounded quarterly
c. compounded m
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Question 394541: Find the accumulated value of an investment of $10,000 for 5 years at an interest rate of 5.5% if the money is
a. compounded semiannually
b. compounded quarterly
c. compounded monthly
d. compounded continuously Answer by robertb(5830) (Show Source):
You can put this solution on YOUR website! The working formula is , where
F = future value, or accumulated value
r = annual rate of interest,
n = number of times interest is compounded in a year, and
t = number of years.
I will not work out the problems for you, I'll just tell you the value of n for each case. I leave them up to you to evaluate each accumulated value.
a. n = 2
b. n = 4
c. n = 12
d. Use the formula for the continuous case,
