algebra questions

Question

If 40900 dollars is invested at an interest rate of 6 percent per year, find the value of the investment at the end of 5 years for the following compounding methods. 

(a) Annual: 

Your answer is $ 

(b) Semiannual: 

Your answer is $  

(c) Monthly: 

Your answer is $  

(d) Daily: 

Your answer is $  

(e) Continuously: 

Your answer is 

Answer 1

If 40900 dollars is invested at an interest rate of 6 percent per year, find the value of the investment at the end of 5 years for the following compounding methods. 

Amount of Investment = Deposit (1 + r/n)^rt

r is rate as a decimal, n is compounding periods in a year, t is the number of years.

40900(1 + 0.06)⁵ = $54733.43 Annually

40900(1+0.06/12)^5•12 = $55167.97 Monthly

Be careful with the order of operations if you aren't using a scientific calculator.

What would you do differently for Semi Annually compounding?

Figuring the continuous compounding requires using the number e. Have you learned that? Would you like to?