Question

Use the compound interest formulas A = P1+- and A = Pert to solve. 69) Find the accumulated value of an investment of $5000 at 5% compounded monthly for 8 years. 70) Find the accumulated value of an investment of $ 5000 at 8% compounded continuously for 3,1 3 years.

Answer 1

Bu formulaA=P [1+ ema] A=?? P= $5000 = 5% = 0.05 .:: A = 5000 [1+ ones y >> A = 5.00 [ 124 6057 T=8 years n=12 (compounded monthly) 12 x 8 0105 A 5000 12 96 96 1) A = 5000 T = 5000 X(1.004) = 5000 x 1046702 7) As $7335.10 Go Aapest A = ?? pa $ 5000 , 04 = 8% = 0.08 T = 3 years (0.08)3 0.24 A: 5000 A = 5000 e 9 As 5000 x 1.27125 A = $6356,25