Question

1.

A sum of $3000 is invested at an interest rate
of 9% per year. Find the amount in the
account after 15 years if interest is
compounded:
(a) annually
(b) semiannually
(c) quarterly
(d) monthly
(e) daily

Answer 1

Amount = 3000(1+.09/m)^(15m)

Explanation:

(a) annually, m=1

(b) semiannually, m=6

(c) quarterly, m=4

(d) monthly, m=12

(e) daily, m=365