Question

Complete the table to determine the effect of the number of compounding periods when computing interest. Suppose that is19,000 invested at 3.5% interest for 10yr under the following compounding options. Round answers in the second column to the nearest whole number. Round answers in the last column to the nearest cent.

Answer 1

Answer: 26801.38

Explanation:

The following parameters are given:

The money invested which is

The principal P = 19000 dollars

The rate R = 3.5 %

Period t = 10 years

The formular for amount of money after 10 years will be

A = P( 1 + R% )^t

Substitute all the parameters into the formula

A = 19000( 1 + 3.5/100 )^10

A = 19000 ( 1 + 0.035 )^10

A = 19000 ( 1.035 )^10

A = 19000 × 1.41059

A = 26801.376

A = 26801.38 dollars