Interest

[zem]

a) A $30000 investment earns interest at the annual rate of 2.5% compounded monthly. Find the total amount of the investment after six years have passed( assuming no additional deposits or withdrawals) and find the amount of interest earned.

b) Assume the $30000 investment in problem (a) is placed in an account where interest is compounded continously. Find the total amount of the investment after six years have passed (assuming no additional deposits or withdrawals) and find the amount of interest earned.

 

[Denis]

How far can you get? Please show your work.

 

[Loren]

You might google "compound interest" for the necessary formulas.

 

[Deleted member 4993]

Visit:

http://search.freefind.com/find.html?id ... d+interest

To see some worked out examples.

 

[tkhunny]

a) A $30000 investment earns interest at the annual rate of 2.5% compounded monthly. Find the total amount of the investment after six years have passed( assuming no additional deposits or withdrawals) and find the amount of interest earned.

Try this, first. Let's see if we have anything as a foundation for the future.

a1) A $30000 investment earns interest at the annual rate of 2.5% compounded monthly. Find the total amount of the investment after one month has passed (assuming no additional deposits or withdrawals) and find the amount of interest earned.

If you get that one, try this one.

a2) A $30000 investment earns interest at the annual rate of 2.5% compounded monthly. Find the total amount of the investment after two months have passed (assuming no additional deposits or withdrawals) and find the amount of interest earned.