Problem

If 1500 dollars is invested in an account for 10 years. Find the value of the investment at the end of 10 years if the interest is: (a) $6.6 \%$ compounded annually: $\$$ (b) $6.6 \%$ compounded semiannually: $\$$ (c) $6.6 \%$ compounded quarterly: $\$$ (d) $6.6 \%$ compounded monthly: $\$$ (e) $6.6 \%$ compounded daily (ignore leap years): $\$$ Round answers to the nearest cent. Calculator

Solution

Step 1 :\(A = P(1 + \frac{r}{n})^{nt}\)

Step 2 :\(A = 1500(1 + \frac{0.066}{1})^{1*10}\)

Step 3 :\(A = 1500 * 1.8197008586099825\)

Step 4 :\(\boxed{A = \$2730.55}\)

Step 5 :\(A = 1500(1 + \frac{0.066}{2})^{2*10}\)

Step 6 :\(A = 1500 * 1.824567067879172\)

Step 7 :\(\boxed{A = \$2736.85}\)

Step 8 :\(A = 1500(1 + \frac{0.066}{4})^{4*10}\)

Step 9 :\(A = 1500 * 1.827125820891125\)

Step 10 :\(\boxed{A = \$2740.69}\)

Step 11 :\(A = 1500(1 + \frac{0.066}{12})^{12*10}\)

Step 12 :\(A = 1500 * 1.828476014536334\)

Step 13 :\(\boxed{A = \$2742.71}\)

Step 14 :\(A = 1500(1 + \frac{0.066}{365})^{365*10}\)

Step 15 :\(A = 1500 * 1.8295065829545702\)

Step 16 :\(\boxed{A = \$2744.26}\)

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Source: https://solvelyapp.com/problems/QYsTHkm0fK/

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