Find the future value and interest earned if $480.00 is invested at 8% compounded (a) quarterly for 3 years. (b) continuously for 3 years. 12/3/2013 | Daniel from Atlanta, GA | 1 Answer | 0 Votes Mark favorite Subscribe Comment
a) 480( 1 + 0.08/4)^{12} = 608. 76 b) 480( 1 + 0.08) ^{3} = 604.66 12/3/2013 | Parviz F. Comment Comments b) should be 480e^{3(.08)} = 610.1996 for continuous compounding 12/3/2013 | Michael F. Using base e, and base 10, answer comes up slightly different. 12/3/2013 | Parviz F. Comment
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