If $32,500 is invested at 69% for 3 years find the future value if the interest is compounded the following ways.
annually, semiannually, quarterly, monthly, daily, every minute (N-525,600)
continuously, simple (not compounded.
Thank you for your time.
You've posted this twice with the same typo.
Do you really mean 69%?
Yes Ms. Sue that is what the problem is calling for.
Thank you
Ms. Sue,
I look at the problem again and I see that it is really 6.9%. I am very sorry, I am stressed and have a brain tumor and sometimes it is hard to read the proper things. Please forgive the error.
thank you
To find the future value of an investment with compound interest, we can use the formula:
\[A = P \left(1 + \frac{r}{n}\right)^{nt}\]
Where:
- A is the future value of the investment
- P is the principal amount (the initial investment)
- r is the annual interest rate
- n is the number of times the interest is compounded per year
- t is the number of years
Let's calculate the future value for each given compounding period:
1. Annually (n = 1):
\[A =\$32,500\left(1+\frac{0.69}{1}\right)^{1 \times 3}\]
2. Semiannually (n = 2):
\[A =\$32,500\left(1+\frac{0.69}{2}\right)^{2 \times 3}\]
3. Quarterly (n = 4):
\[A =\$32,500\left(1+\frac{0.69}{4}\right)^{4 \times 3}\]
4. Monthly (n = 12):
\[A =\$32,500\left(1+\frac{0.69}{12}\right)^{12 \times 3}\]
5. Daily (n = 365):
\[A =\$32,500\left(1+\frac{0.69}{365}\right)^{365 \times 3}\]
6. Every minute (n = 525,600):
\[A =\$32,500\left(1+\frac{0.69}{525,600}\right)^{525,600 \times 3}\]
7. Continuously:
\[A = P \times e^{rt}\]
(Where e is Euler's number, approximately 2.71828)
8. Simple (not compounded):
\[A = P \times \left(1 + rt\right)\]
Calculating each value will give you the future value for each type of compounding.