If 16,000 dollars is invested at an interest rate of 7 percent per year, find the value of the investment at the end of 5 years for the following compounding methods.

Question

how do i do this

Answer 1

A = Pe^rt for continuous compounding

A=P(1+r/n)^nt for compounding n times per year

A=16,000(e)^.07(5) = 16,000(e^.35) = about $22,705.08

for annual compounding n=1

A=16,000(1.07)^5

for monthly compounding

A=16,000(1+.07/12)^(12)(5)

for quarterly compounding

A=16,000(1+.07/4)^4(5)

for daily compounding

A=16,000(1+.07/365)^365(5)