A = P(1 + (r/n)^{nt}
Where P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year
Annual: n = 1
A = P(1 + (r/n)^{nt} = [($32,000)(1 + (0.09)/(1)]^{(1)(5)} = [($32,000)(1 + 0.09)]^{5} =
$49,235.97
Semiannual: n = 2
A = P(1 + (r/n)^{nt} = [($32,000)(1 + (0.09)/(2)]^{(2)(5)} = [($32,000)(1 + 0.045)]^{10} =
$49,695.02
Monthly: n = 12
A = P(1 + (r/n)^{nt} = [($32,000)(1 + (0.09)/(12)]^{(12)(5)} =
$50,101.79
Daily: n = 365 days (unless it's a leap year)
A = P(1 + (r/n)^{nt} = [($32,000)(1 + (0.09)/(365)]^{(365)(5)} = [($32,000)(1 + 2.466 x 10^{4})]^{1825}
A = $50,183.21
Continuous:
A = Pe^{rt }= ($32,000)e^{(0.09)(5)} = ($32,000)e^{0.45} =
$50,185.99
11/26/2013

William S.