Ask Question
9 March, 13:41

Find the amount to which $550 will grow under each of the following conditions. Do not round intermediate calculations. Round your answers to the nearest cent.

(A) 9% compounded annually for 5 years.

(B) 9% compounded semiannually for 5 years.

(C) 9% compounded quarterly for 5 years.

(D) 9% compounded monthly for 5 years.

+3
Answers (1)
  1. 9 March, 14:06
    0
    (A) Fv = $864.2

    (B) Fv = $1302.05

    (C) Fv = $2003.4

    (D) Fv = $96817.21

    Explanation:

    Giving the following information:

    Initial investment = $550

    We will use the final value formula:

    FV=Present value * (1+i) ^n

    (A) 9% compounded annually for 5 years.

    Fv = 550 * (1.09) ^5=$864.2

    (B) 9% compounded semiannually for 5 years.

    Fv = 550 * (1.09) ^10 = $1302.05

    (C) 9% compounded quarterly for 5 years.

    Fv = 550 * (1.09) ^15 = $2003.4

    (D) 9% compounded monthly for 5 years.

    Fv = 550 * (1.09) ^60=$96817.21
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Find the amount to which $550 will grow under each of the following conditions. Do not round intermediate calculations. Round your answers ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers