Use the compound interest formula Upper A equals Upper P left parenthesis 1 plus StartFraction r Over n EndFraction right parenthesis Superscript nt
to find the accumulated value of an investment of $ 15 comma 000 for 3 years at an interest rate of 4 % if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly.
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Part 1
a. What is the accumulated value if the money is compounded semiannually?
$
16,892.44 (Round to the nearest cent as needed.)
Part 2
b. What is the accumulated value if the money is compounded quarterly?
$
16,902.38 (Round to the nearest cent as needed.)
Part 3
c. What is the accumulated value if the money is compounded monthly?
$
enter your response here (Round to the nearest cent as needed.)
The answer for part 3 is missing.
so answer it
I apologize for the inconvenience. To calculate the accumulated value if the money is compounded monthly, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = Accumulated value
P = Principal amount (initial investment)
r = Interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years
Using the given values:
P = $15,000
r = 0.04 (4% as a decimal)
n = 12 (compounded monthly)
t = 3 years
Plugging these values into the formula:
A = 15000(1 + 0.04/12)^(12*3)
Calculating this expression will give us the accumulated value.
so do it
I apologize again for the confusion. Let's calculate the accumulated value if the money is compounded monthly.
A = 15000(1 + 0.04/12)^(12*3)
A = 15000(1 + 0.00333333)^(36)
A = 15000(1.00333333)^(36)
A ≈ $16,906.47
Therefore, the accumulated value if the money is compounded monthly is approximately $16,906.47.