Eva M.

asked • 02/12/20

What does Compounded quarterly mean to do and 3-5 mean?

In this scenario you have $5000 to invest and you want to know which of the following investment situations will give you the most money at the end of 5 years. The interest rate for all the situations is 6%. *MAKE SURE YOU PUT YOUR EXPONENTS IN PARENTHESES!


3.Calculate the investment if it is compounded quarterly (four times a year).

4.Calculate the investment if it is compounded monthly(12 times a year).

5.Calculate the investment if it is compounded daily(365 times a year).


Also since one of them is compounded quarterly , I think the equation is 5000(1.015)^4

because 0.06/4 is 0.015 and plus 1=1.015?

idk if this is correct since it says 4 times a year?? and the others I have no idea! please explain!

2 Answers By Expert Tutors

By:

Mark M. answered • 02/12/20

Tutor
5.0 (243)

Mathematics Teacher - NCLB Highly Qualified

Eva M.

thxs!
Report

02/12/20

Eva M.

Wait is the daily answer 6749.1276?
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02/12/20

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