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# ?!?!?

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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 :((

Jan 24, 2018

### 2+0 Answers

#1
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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

Jan 24, 2018
#2
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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.

Jan 24, 2018