Question

Homework 08: Problem 3 Prev Up Next Prev (1 pt) What is the balance after 1 year of an account containing $800 which earns a yearly nominal interest of 5% that is compounded (round all answers to the nearest cent; do not include commas): (a) annually? $ 840 (b) weekly (there are 52 weeks per year)? $ 1312 (c) every minute (there are 525,600 minutes per year)? $ (d) continuously? $ Note: You can earn partial credit on this problem. Preview Answers Submit Answers You have attempted this problem 2 times. Your overall recorded score is 25%. You have 18 attempts remaining. Email instructor MacBook Pro EA T IT e uop

Answer 1

PART(a):

The formula for compound interest with n interval is given by,

$F = P\left ( 1+\frac{r}{n} \right )^{nt}$

plugin the values,

$F = 800\left ( 1+\frac{0.05}{1} \right )^{(1)(1)}$

PART(b):

The formula for compound interest with n interval is given by,

$F = P\left ( 1+\frac{r}{n} \right )^{nt}$

plugin the values,

$F = 800\left ( 1+\frac{0.05}{52} \right )^{(52)(1)}$

PART(c):

The formula for compound interest with n interval is given by,

$F = P\left ( 1+\frac{r}{n} \right )^{nt}$

plugin the values,

$F = 800\left ( 1+\frac{0.05}{525600} \right )^{(525600)(1)}$

PART(d):

The Formula for continuous compounding is given by,

plugin the values,

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