Answer:
a. A=$11,428.25
b. A=$11,436.74
c. A=$11,442.48
d. A=$14,445.37
Step-by-step explanation:
The compound interest formula is:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where:
P=10,000
t= 3 years
r=0.045
n = periods compounded in a year.
a. compounded semiannually:
[tex]A=10,000(1+\frac{0.045}{2})^{2*3}\\A=11,428.25[/tex]
b. compounded quarterly:
[tex]A=10,000(1+\frac{0.045}{4})^{4*3}\\A=11,436.74[/tex]
c. compounded monthly:
[tex]A=10,000(1+\frac{0.045}{12})^{12*3}\\A=11,442.48[/tex]
d. compounded continuously:
The continously compounded interest equation is:
[tex]A=10,000e^{(0.045*3)}\\A=14,445.37[/tex]
