precalculus Colleges

Question

Calculate the accumulated value of the following investments at their given rates and compounding periods. Write out the formula being used to calculate these accumulated amounts showing the substitution of values. Round all final answer only to the nearest dollar. Don’t round intermediate values. a.)a.

A.$12,[email protected]%, compounded quarterly for 20 years

B.$23,000@2% compounded weekly for 25 years

C, $12,[email protected]% compounded continuously for 20 years

D, $23,000@2% compounded continuously for 25 years

Answer 1

I will do the first problem

Since compounding occurs quarterly there are 80 compounding episodes in 20 years (20 x 4)

If the annual rate is 3.5% then the quarterly rate is 3.5/4= .875% or .00875

so value after 20 years is 12500( 1.00875)^80= 25,095