Problema Solution
Find the accumulated value of an investment of $20,000 for 7 years at an interest rate of 5%, if the money is A) Compounded semiannually, B) quarterly, C) monthly, and D) Continuously.
Answer provided by our tutors
A) $20,000 * (1 + .05/2)^(2*7) = $28,259.48
B) $20,000 * (1 + .05/4)^(4*7) = $28,319.85
C) $20,000 * (1 + .05/12)^(12*7) = $28,360.72
D) $20,000 * e^(.05 * 7) = $28,381.35