$25,000 is deposited for 5 years in an account earning 5% interest. (Round your answers to two decimal places.) (a) Calculate the future value of the investment if interest is compounded semiannually. $ (b) Calculate the future value if interest is compounded quarterly. $ (c) How much greater is the future value of the investment when the interest is compounded quarterly?
$25,000 is deposited for 5 years in an account earning 5% interest. (Round your answers to two decimal places.) (a) Calculate the future value of the investment if interest is compounded semiannually. $ (b) Calculate the future value if interest is compounded quarterly. $ (c) How much greater is the future value of the investment when the interest is compounded quarterly?
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter5: Exponential And Logarithmic Functions
Section5.1: Exponential Functions And Their Graphs
Problem 95E: Applications Saving for college In 20 years, a father wants to accumulate 40,000 to pay for his...
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Question
$25,000 is deposited for 5 years in an account earning 5% interest. (Round your answers to two decimal places.)
(a) Calculate the future value of the investment if interest is compounded semiannually.
$
(b) Calculate the future value if interest is compounded quarterly.
$
(c) How much greater is the future value of the investment when the interest is compounded quarterly?
$
$
(b) Calculate the future value if interest is compounded quarterly.
$
(c) How much greater is the future value of the investment when the interest is compounded quarterly?
$
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