Question

Find the amount accumulated after investing a principle P for T years at an interest rate compounded k times per year.

P= $3,500 r=5% t=10 k=4
Hint: A=P(1+r/k)^kt

Find the amount accumulated after investing a principle P for t years at a interesting rate compounded k times a year.

P=25,300 r=4.5% t=25 k=12

hint: A=P(1+r/k)^kt

Answer 1

1.
`3500(1+ (.05)/(4)) ^(4*10)`

`3500(1+.0125) ^(40)`
3500(1.64) = 5740

2.
`25300(1+ (.045)/(12) ) ^(12*25)`

`25300(1+.00375) ^(300)`
25300(3.07) = 77671

Hope that helps. Feel free to ask any questions