Concept explainers
Use the compound interest formulas, and , to solve Exercises 39—42. Round answers to the nearest cent.
39. Find the accumulated value of an investment of $10,000 for 5 years at an interest rate of 5.5% if the money is
a. compounded semiannually: b. compounded monthly; c. compounded continuously.
40. Find the accumulated value of an investment of $5000 for 10 years at an interest rate of 6.5% if the money is
a. compounded semiannually: b. compounded monthly:
c. compounded continuously.
41. Suppose that you have $12,000 to invest. Which investment yields the greater return over 3 years: 7% compounded monthly or 6.85% compounded continuously?
42. Suppose that you have $6000 to invest. Which investment yields the greater return over 4 years: 8.25% compounded quarterly or 8.3% compounded semiannually?
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- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage