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Accumlated value..extra hard!?


Find the accumlated value of an investment of $5,000 for 10 years at an interest rate of 6.5% if the money is a. compounded semiannually; b. compounded quaterly; c. compounded monthly; d. compounded continuously. ( I need answers for each letter)

i don't have my calculator on hand.. but if you didn't already figure it out or get help... it's 5000(1.0325)^20, 5000(1.01625)^20, 5000(0.00541666...)^20, and 50000e^20
This is based off the formula A(t)= P(1+r/n)^nt for the first three... where P equals the initial principle, r equals the rate of interest (not in percent form), n equals the number of times the Principal is compounded in a year, e.i. 4 times quaterly, and t equals the amount of time the rate of interest is in affect. For the continuous compounding the equation is A(t)= Pe^nt...... e= ~2.71828. This number is named after Euler. plug those equations up top into your calculator and you'll get the right answers... but be sure to learn the equation.

Now that is so straight forward if you just think about it a little.

You need to learn so do so.

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