Find the accumulated value of an investment of $10,000 for 5 years at an interest rate of 5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent.
Find the accumulated value of an investment of $10,000 for 5 years at an interest rate of 5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent.
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
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Transcribed Image Text:Find the accumulated value of an investment of $10,000 for 5 years at an interest rate of 5% if the money is a. compounded semiannually; b. compounded quarterly;
c. compounded monthly d. compounded continuously. Round answers to the nearest cent.
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a. What is the accumulated value if the money is compounded semiannually?
(Round your answer to the nearest cent.)
Formulas
In the provided formulas, A is the balance in the account after t years, P is the
principal investment, r is the annual interest rate in decimal form, n is the number
of compounding periods per year, and Y is the investment's effective annual yield
in decimal form.
nt
"
A
P =
A = Pert
Y =
- 1
nt
1+
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