Use the compound interest formulas A=P1+ r nnt and A=Pert to solve the problem given.

Question

Use the compound interest formulas

A=P1+rnnt

and

A=Pert

to solve the problem given. Round answers to the nearest cent.

Find the accumulated value of an investment of

$25,000

for

4

years at an interest rate of

4.5%

if the money is a. compounded​ semiannually;

b.

compounded​ quarterly;

c.

compounded​ monthly; d. compounded continuously.

Question content area bottom

Part 1

a. What is the accumulated value if the money is compounded​ semiannually?

​$enter your response here

​(Round your answer to the nearest cent. Do not include the​ $ symbol in your​ answer.)

Part 2

b.What

is the accumulated value if the money is compounded​ quarterly?

​$enter your response here

​(Round your answer to the nearest cent. Do not include the​ $ symbol in your​ answer.)

Part 3

c. What is the accumulated value if the money is compounded​ monthly?

​$enter your response here

​(Round your answer to the nearest cent. Do not include the​ $ symbol in your​ answer.)

Part 4

d. What is the accumulated value if the money is compounded​ continuously?

​$enter your response here

​(Round your answer to the nearest cent. Do not include the​ $ symbol in your​ answer.)

Answer 1

A=Pe^rt

A= 25,000(e^.045(4)) for continuous compounding

A=P(1+r/n)^nt

A=25,000(1+.045/2)^2(4) for compounding twice a year

A=25,000(1+.045/12)^12(4) for monthly compounding

A=25,000(1+.045/4)^4(4) for quarterly compounding

use a calculator