Wednesday

October 1, 2014

October 1, 2014

Posted by **student** on Tuesday, June 19, 2007 at 11:46pm.

Investments Suppose $10,000 is invested at an annual rate of 5% for 10 years. Find the future value if interest is compounded as follows.

A) Annually

B) Quarterly

C) Monthly

D)Daily (365 days)

In each case, use the formula

Future value = Initial value)*(1 + i)^n

where i is the interest fraction paid for the interval (year, quarter, month or day) and n is the number of intervals.

In case A), i = 0.05 and n = 10

In case B), i = 0.0125 and n = 40

Do the numbers. That's how you learn this stuff.

**Answer this Question**

**Related Questions**

math - what formulas do i use for this: Investments Suppose $10,000 is invested ...

Finance - Find the future value of $10,000 invested now after five years if the ...

math - a) 1150 dollars invested at 9% annual interest rate (compounded yearly) ...

college math - Suppose $400 is invested for 4 years at a nominal yearly interest...

college math - Suppose $400 is invested for 4 years at a nominal yearly interest...

Math - Find the interest if $ 9,000 is invested at an annual simple interest ...

Math - Find the future value of a $10,000 investment at 10 % annual interest ...

Compound math - (Future Value) Suppose you invest $8000 into an account that ...

Plz Hel, word problem:) - I have tried hard to solve, but I'm stuck.... Let’s ...

math - find the present value of ordinary annuity payments of 890 each year for ...