Here's the question.
Suppose you invest $1500 in an account paying 4.75% annual interest. Find the account balance after 25 yr. with the interest compounded the following ways:
A)annually
B)semiannually
C)quarterly
D)Monthly
I guess you need to find the answere for all of these.
2006-11-20 10:44:38 · 2 answers · asked by Ashli 2 in Business & Finance ➔ Investing
Paula's formula was almost correct
A= P ( 1 + (r/n)) ^ (nt)
2006-11-20 13:00:43 · answer #1 · answered by Gemelli2 5 · 3⤊ 0⤋
A = P(1 + 1/n) raised to the rt power
a = $1,500 (1 + 4.75/1) raised to the 4.75*25 power
/2
/4
/12
n represents the compounding period (1 annual, 2 semi annual, 4 quarterly, 12 monthly
2006-11-20 11:08:21 · answer #2 · answered by Paula M 5 · 0⤊ 1⤋