Answered

Westonci.ca is your go-to source for answers, with a community ready to provide accurate and timely information. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A person invests $100,000 dollars at 8% for 10 years. How much money does the person have in their account if it is compounded....
a) annually
b) semi annually
c) quarterly
d) monthly
e) daily
f) continuously

i only need a, c, e, f

Sagot :

sqdancefan

9514 1404 393

Answer:

  a)  $215,892.50

  c)  $220,803.97

  e)  $222,534.58

  f)  $222.554.09

Step-by-step explanation:

The compound interest formula is ...

  FV = P(1 +r/n)^(nt)

where principal P is invested at annual rate r for t years, compounded n times per year. In this problem, you have P=100,000, r=0.08, t=10, and the only variable of interest is n.

When calculations are repeated, it is often convenient to let a calculator or spreadsheet do them. You only need to program the formula once, then use it for the different values of the variable of interest. Most spreadsheets have this formula built in, so you don't even need to program it.

__

For continuous compounding, the formula is ...

  FV = Pe^(rt)

  FV = 100,000e^(0.08·10) = 222,554.09

View image sqdancefan
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.