Question 172750
{{{F=P(1+(i/m))^(nm)}}} ----------> Working eqn
Remember: {{{system(F=FutureSavings,P=Principal,i=Interest,m=Compounded,n=years)}}}
a) {{{m=1}}}, compounded annually
{{{F=760000(1+0.05)^5}}}
{{{F=760000(1.2762816)}}}
{{{F=969973.99}}}
Total Interest: {{{F-P=969973.99-760000}}}=$209,973.99, Answer
.
b) {{{m=365}}}, compounded continuosly/daily
{{{F=760000(1+(0.05/365))^(5*365)}}}
{{{F=760000(1.000137)^1825}}}
{{{F=975842.61}}}
Total Interest: {{{F-P=975842.61-760000}}}=$215,842.61, Answer
.
Thank you,
Jojo