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gibsonj338

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Questions 101
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 #2
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To get the three answers, you need to know what the interest rate formula is.  For this math problem, the interest rate formula is:

 

A=P(1+rn)nt

 

A = amount of money earned after investment

 

P = amount of money invested

 

r = interest rate per period

 

n = number of times the interest is compounded each year

 

t = number of years the amount of money is deposited for

 

A=$10,000(1+0.0482)2×3

 

A=$10,000(1+0.0482)6

 

A=$10,000(1+0.024)6

 

A=$10,000(1.024)6

 

A=$11,529.21504606846976

 

A$11,529.22

 

 

Depositing $10,000 into an account that earns 4.8% for 3 years semiannually wil give you approximately $11,529.22.

 

A=$10,000(1+0.0484)4×3

 

A=$10,000(1+0.0484)12

 

A=$10,000(1+0.012)12

 

A=$10,000(1.012)12

 

A=$10,000(1.153894624182586)

 

A=$11,538.94624182586

 

A$11,538.95

 

Depositing $10,000 into an account that earns 4.8% for 3 years quarterly wil give you approximately $11,538.95.

 

A=$10,000(1+0.04812)12×3

 

A=$10,000(1+0.04812)36

 

A=$10,000(1+0.004)36

 

A=$10,000(1.004)36

 

A=$10,000(1.1545524338367405)

 

A=$11,545.524338367405

 

A$11,545.52

 

Depositing $10,000 into an account that earns 4.8% for 3 years monthlty wil give you approximately $11,545.52.

Dec 19, 2016