+0  
 
0
71
2
avatar

how much interest would you earn in one year on an $1000 investment earning 5% interest if the interest is compounded once, twice, four times, twelve times, or 365 times a year?

 

im following the equation A = P(1+r/n)^nt but my answers dont seem to be correct :((

Guest Jan 24, 2018
Sort: 

2+0 Answers

 #1
avatar
+1

Compounded annually =$1,050.00

Compounded semi-annually =$1,050.63

Compounded quarterly = $1,050.95

Compounded monthly =$1,051.16

Compounded daily = $1,051.27

Guest Jan 24, 2018
 #2
avatar
0

A = 1,000(1+0.05)^1 =$1,050.00  compounded annually.

A = 1,000(1+0.05/2)^2=$1,050.63 compounded semi-annually.

A = 1,000(1+0.05/4)^4=$1,050.95 compounded quarterly.

A = 1,000(1+0.05/12)^12 =$1,051.16 compounded monthly.

A = 1,000(1+0.05/365)^365 =$1,051.27 compounded daily.

Guest Jan 24, 2018

21 Online Users

avatar
We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.  See details