Find the amounts due

Question

(a) If $1000 is borrowed at 8% interest, find the amounts due at the end of 3 years if the interest is compounded as follows. (Round your answers to the nearest cent.)

(i) annually

$______

(ii) quarterly

$______

(iii) monthly

$______

(iv) weekly

$______

(v) daily

$______

(vi) hourly

$______

(vii) continuously

$______

Answer 1

(i) A(3) = 1000(1.08)³

(ii) A(3) = 1000(1 + 0.08/4)⁽⁴⁾⁽³⁾

(iii) A(3) = 1000(1 + 0.08/12)^(12)(3)

(iv) A(3) = 1000(1 + 0.08/365)^(365)(3)

(v) A(3) = 1000(1 + 0.08/8769)^(8760)(3)

(vi) A(3) = 1000e^(3)(0.08)