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Accounting

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Calculate the future value of the following:
o $5,000 compounded annually at 6% for 5 years
o $5,000 compounded semiannually at 6% for 5 years
o $5,000 compounded quarterly at 6% for 5 years
o $5,000 compounded annually at 6% for 6 years
• Answer the following: What conclusions can be drawn about the frequency of compounding interest? What conclusions can be drawn about the length of time an amount is compounding?


Please help, as I'm at a loss here.
Thanks for your help

  • Accounting - ,

    The first answer is 5000*(1.06)^5
    The second answer is 5000(1.03)^10
    The third answer is 5000*(1.015)^20
    The fourth answer is 5000*(1.06)^6

    Do the numbers and draw your own conclusions.

  • Accounting - ,

    $5,000 compounded semiannually at 6% for 5 years

  • Accounting - ,

    Compute the amount that a $15,000 investment today would accumulate at 9% (compound interest) by the en of 6 years.

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