I'm doing a group project and I got different answers from every1 else and i wanted to know if its right..
Suppose you deposit $20,000 for 3 years at a rate of 8%.
a) Calculate the return (A) if the bank compounds annually (n = 1). $25,194.24
Calculate the return (A) if the bank compounds quarterly (n = 4). Round your answer to the hundredth's place. i got $25,364.84
Calculate the return (A) if the bank compounds monthly (n = 12). Round your answer to the hundredth's place..i got $25,404.74
Calculate the return (A) if the bank compounds daily (n = 365). Round your answer to the hundredth's place. i got $25,404.74
If a bank compounds continuous, then the formula becomes simpler, that is A=P(1+r/n)^n/t
where e is a constant and equals approximately 2.7183. Calculate A with continuous compounding. Round your answer to the hundredth's place. i got $25,424.98
2007-06-29
08:32:21
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2 answers
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asked by
Luckey_101
1