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use the compound interest formulas A=P e^rt to solve the problem given. round answers to the nearest cent.
Find the accumulated value of an investment of $15,000 for 6 years at an interest rate of 5.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly; d. compounded continuously.

Respuesta :

semsee45

Answer:

a) $20,771.76

b) $20,817.67

c) $20,484.80

d) $20,864.52

Step-by-step explanation:

Compound Interest Formula

[tex]\large \text{$ \sf A=P\left(1+\frac{r}{n}\right)^{nt} $}[/tex]

where:

  • A = final amount
  • P = principal amount
  • r = interest rate (in decimal form)
  • n = number of times interest applied per time period
  • t = number of time periods elapsed

Part (a): semiannually

Given:

  • P = $15,000
  • r = 5.5% = 0.055
  • n = 2
  • t = 6 years

Substitute the given values into the formula and solve for A:

[tex]\implies \sf A=15000\left(1+\frac{0.055}{2}\right)^{2 \times 6}[/tex]

[tex]\implies \sf A=15000\left(1.0275}{2}\right)^{12}[/tex]

[tex]\implies \sf A=20771.76[/tex]

Part (b): quarterly

Given:

  • P = $15,000
  • r = 5.5% = 0.055
  • n = 4
  • t = 6 years

Substitute the given values into the formula and solve for A:

[tex]\implies \sf A=15000\left(1+\frac{0.055}{4}\right)^{4 \times 6}[/tex]

[tex]\implies \sf A=15000\left(1.01375}\right)^{24}[/tex]

[tex]\implies \sf A=20817.67[/tex]

Part (c): monthly

Given:

  • P = $15,000
  • r = 5.5% = 0.055
  • n = 12
  • t = 6 years

Substitute the given values into the formula and solve for A:

[tex]\implies \sf A=15000\left(1+\frac{0.055}{12}\right)^{12 \times 6}[/tex]

[tex]\implies \sf A=15000\left(1+\frac{0.055}{12}\right)^{72}[/tex]

[tex]\implies \sf A=20484.80[/tex]

Continuous Compounding Formula

[tex]\large \text{$ \sf A=Pe^{rt} $}[/tex]

where:

  • A = Final amount
  • P = Principal amount
  • e = Euler's number (constant)
  • r = annual interest rate (in decimal form)
  • t = time (in years)

Part (d): continuous

Given:

  • P = $15,000
  • r = 5.5% = 0.055
  • t = 6 years

Substitute the given values into the formula and solve for A:

[tex]\implies \sf A=15000e^{0.055 \times 6}[/tex]

[tex]\implies \sf A=20864.52[/tex]

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