use the compound interest formula A=P(+r/n)^nt to solve the problem giving .round answers to the nea

label Algebra
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

use the compound interest formula A=P(+r/n)^nt to solve the problem giving .round answers to the nearest cent. find the value of an investment of $20,000 for 3 years at an interest rate of 7% if the money is compounded a.semiannually; b. quarterly; c. monthly .   what is the future value if the money is compounded semiannually?

Jul 13th, 2015

Thank you for the opportunity to help you with your question!

A=P(1 +r/n)^nt


a)SEMI ANNUALY 

so , n = 2

 A= 20 000 ( 1  + 0.07 / 2) ^ 2* 3

      =  20000 (1.035)^ 6 

      =  $ 24585.10653


b) 

quarterly 

so , n = 4

 A= 20 000 ( 1  + 0.07 / 4) ^ 4* 3

      =  20000 (1.0175)^ 12 

      =  $ 24628.7863


c)  

monthly

so , n = 12

 A= 20 000 ( 1  + 0.07 / 12) ^ 12* 3

      =  20000 (1.005833333)^ 36 

      =  $ 24658.51175


Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 13th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Jul 13th, 2015
...
Jul 13th, 2015
Jun 27th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer