Complete the table to determine the balance A for P dollars invested at rate r for t years and compounded n times per year
P=$1800
r=6%
t=40 years
Complete the table to determine the balance A for P dollars invested at rate r for t years and compounded n times per year
P=$1800
r=6%
t=40 years
You didn't state the value of n, or how frequently is the interest compounded per year!
A =1,800 x [1 + 0.06]^40 =$18,514.29 The balance after 40 years comp. annually
A=1,800 x [1 + 0.06/2]^40*2=$19,153.60 The balance if compounded semi-annually.
A=1,800 x [1 + 0.06/4]^40*4=$19,491.23 the balance if compounded quarterly.
A=1,800 x [1 + 0.06/12]^40*12=$19,723.42 the balance if compounded monthly.
A=1,800 x [1 + 0.06/52]^40*52=$19,814.28 the balance if compounded weekly.
A=1,800 x [1 + 0.06/365]^40*365=$19,837.80 the balance if compounded daily
A=1,800 x e^(0.06*40) =$ 19,841.72 the balance if compounded continuously.
And there you go!. Covered most of the ground for you.
