Search
Ask a question
0

find future value and interest

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.

1 Answer by Expert Tutors

Tutors, sign in to answer this question.
Parviz F. | Mathematics professor at Community CollegesMathematics professor at Community Colle...
4.8 4.8 (4 lesson ratings) (4)
0
 a)
      480( 1 + 0.08/4)12 = 608. 76
 
 
b)  480( 1 + 0.08) 3 = 604.66

Comments

b) should be 480e3(.08) = 610.1996 for continuous compounding
Using base e, and base 10, answer comes up slightly different.