Question

Phillip Roehl, owner of the Roehl Hotel, desires to know how much each investment will grow to at the end of its life. The investments are as follows: $10,000 invested today for ten years, with annual interest of 8 percent compounded annually, $5,000 invested today for five years, earning annual interest of 10 percent compounded semi-annually, & $8,000 invested in one year for four years, earning annual interest of 12 percent compounded quarterly.

Answer 1

Investment 1.
Investment (P)	10000
No of Years (n)	10
Rate of Interest (r )	8%	Compounded Annually
Investment Value in 10 Year (A)	$21,589.25
A = P ( 1 + (r /100^n))^n*t
A = 10000 ( 1 + (8 / 100^10))^1*10
Investment 2.
Investment (P)	5000
No of Years (n)	5
Rate of Interest (r )	10%	Compounded Semi -Annually
Investment Value in 10 Year (A)	$8,144.47
A = $5,000 ( 1 + (10 / 100^5))^2*5
Investment 3.
Investment (P)	8000
No of Years (n)	4
Rate of Interest (r )	12%	Compounded Quarterly
Investment Value in 10 Year (A)	$12,837.65
A = $8,000 ( 1 + (12 / 100^4))^4*4