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College Algebra

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Investment A: $5,000 invested for 7 years compounded semiannually at 9%.
Investment B: $ 6,000 invested for 5 years compounded quarterly at 4.1%.
Find each total for each investment and determine which investment results are greater.

  • College Algebra - ,

    A: amount = 5000(1.045)^14 = ....

    b: amount = 6000(1.01025)^20 = ....

  • College Algebra - ,

    A(t) = P (1 + r/n)^nt
    P = 5000, t = 7, r = .09, n = 2

    A(7) = 5000 (1 + .09/2)^2(7)
    A(7) = 5000 (1 + 0.045)^14
    A(7) = 5000 (1.045)^14
    A(7) = $9259.72 interest
    5000 + 9259.72 = 14259.72


    A(t) = P (1 + r/n)^nt
    P = 6000, t = 5, r = .0410, n = 4

    A(7) = 6000 (1 + .0410/4)^4(5)
    A(7) = 6000 (1 + 0.01025)^20
    A(7) = 6000 (1.01025)^20
    A(7) = $7357.47 interest
    6000 + 7357.47 = 13357.47

    check my math
    I am not a tutor

  • College Algebra - ,

    30000(e.055.5)

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