Use the compound interest formulas A P 1 rnnt and A Pert

Use the compound interest formulas A = P (1 + r/n)^nt and A = Pe^rt to solve the exercises below. Find the accumulated value of an investment of $14300 for 3 years at an annual interest rate of 2.6% if the money is compounded semiannually: compounded monthly: compounded quarterly: compounded continuously:

Solution

compounded semiannually : A = P(1 + r/2)^2n

= 14300( 1+ 0.026/2)^6 = $15452.285

compounded monthly : 14300( 1+ 0.026/12)^3*12 = $15458.749

Compounded quarterly : 14300( 1+ 0.026/4)^6*4 = $ 15456.152

Compounded continously 14300(e^(0.026*3) = $ 15460.054