Hey guys. I really need help with my assignment. Your help will be so much appre
ID: 3014915 • Letter: H
Question
Hey guys. I really need help with my assignment. Your help will be so much appreciated. Thanks!!
If 2000 dollars is invested in a bank account at an interest rate of 6 per cent per year. Find the amount in the bank after 6 years if interest is compounded annually Find the amount in the bank after 6 years if interest is compounded quarterly: Find the amount in the bank after 6 years if interest is compounded monthly: Finally, find the amount up the bank after 6 years if interest is compounded continuouslyExplanation / Answer
A = P(1 + r/n)nt ,A is the amount after t years.P is the principal, r is the annual rate of interest, n= number of times compounded in year
a)compounded annually
t=6, r=6%=0.06,n=1,P=2000
amount after 6 years =2000*(1+(0.06/1))1*6
amount after 6 years =2837 dollars
b)compounded quarterly
t=6, r=6%=0.06,n=4,P=2000
amount after 6 years =2000*(1+(0.06/4))4*6
amount after 6 years =2859 dollars
c)compounded monthly
t=6, r=6%=0.06,n=12,P=2000
amount after 6 years =2000*(1+(0.06/12))12*6
amount after 6 years =2864.1 dollars
d)when compounded continously
A=Pert
t=6, r=6%=0.06,P=2000
amount after 6 years=2000*e0.06*6
amount after 6 years=2866.7 dollars