find the accumulated value of an investment of $10000 for 6 years at an interest
ID: 2569550 • Letter: F
Question
find the accumulated value of an investment of $10000 for 6 years at an interest rate of 6% if the money is compounded semi-annually, Quarterly, monthly, and continuously. use the formulas A = p(1 + r/n)^nt and A = pe^rt find the accumulated value of an investment of $10000 for 6 years at an interest rate of 6% if the money is compounded semi-annually, Quarterly, monthly, and continuously. use the formulas A = p(1 + r/n)^nt and A = pe^rt find the accumulated value of an investment of $10000 for 6 years at an interest rate of 6% if the money is compounded semi-annually, Quarterly, monthly, and continuously. use the formulas A = p(1 + r/n)^nt and A = pe^rtExplanation / Answer
1.semi-annually:
A = p(1 + r/n)^nt
=10,000(1+0.06/2)^(2*6)=$14257.61
2.Quarterly:
A = p(1 + r/n)^nt
=10,000(1+0.06/4)^(4*6)=$14295.03
3.Monthly:
A = p(1 + r/n)^nt
=10000(1+0.06/12)^(12*6)=$14320.44
4.Continously:
A = pe^rt[where e=2.71828]
Hence
A=$10,000(2.71828)^(0.06*6)=$14333.29
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