SOLUTION: If 6400 dollars is invested at an interest rate of 5 percent per year, find the value of the investment at the end of 5 years for the following compounding methods. Give the annu

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Question 541859: If 6400 dollars is invested at an interest rate of 5 percent per year, find the value of the investment at the end of 5 years for the following compounding methods.
Give the annual, semiannual, monthly, daily, and continuously amount.
Answer by solver91311(24713) About Me  (Show Source):
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Periodic compound interest:



Where

represents the Future Value

represents the Present Value (amount invested)

represents the annual interest rate expressed as a decimal

represents the number of compounding periods per year (1 for annual, 2 for semiannual, 12 for monthly, etc.)

represents the number of years the money will be invested.

Continuous Compounding:



as above

is the base of the natural logarithms

Plug in the values and do the arithmetic. You will need your calculator if you want to get this done before Christmas.

John

My calculator said it, I believe it, that settles it
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