Problem

A sum of $\$ 5000$ is deposited into an investmen…

02:30

Problem 15 Medium Difficulty

If $\$ 10000$ is invested at an annual interest rate of $11 \%,$ compounded quarterly, find the value of the investment after the given number of years.
a) 5 years
b) 10 years
c) 15 years

Answer

Check back soon!

Related Courses

Algebra

Higher Level Mathematics

Chapter 5

Exponential and Logarithmic Functions

Section 1

Exponential functions

Discussion

You must be signed in to discuss.

Top Algebra Educators

Watch More Solved Questions in Chapter 5

Problem 1

Problem 2

Problem 3

Problem 4

Problem 5

Problem 6

Problem 7

Problem 8

Problem 9

Problem 10

Problem 11

Problem 12

Problem 13

Problem 14

Problem 15

Problem 16

Problem 17

Problem 18

Problem 19

Problem 20

Problem 21

Problem 22

Problem 23

Problem 24

Video Transcript

in this problem. We're being told that we have $10,000 invested at 11% interest rate compounded quarterly. And we want to find the final investment. Uh, after five years, 10 years and 15 years in our formula book that we have a formula for, ah, compound interest So we can write this as f B, which is the future value equals P V. The present value is 10,000. That's how much were investing times one plus, the rate we're being told is 11% 11 over 100. And kay is the number of compound ng periods. Since her compound in quarterly K is going to be four as it's four times a year. So the power of, uh K, which is four and n, is the number of years that we want to consider. So this is the generic formula. Um, for us to do our calculations with in each of A B and C, the five and the 10 and the 15 are the ah N values. So this is gonna be four times five as an exponents. So this is 10,000 in brackets. We got one plus 11 over 400. So that will be, ah, 1.275 in the brackets to the power of 20. So do the exponents times the number in front that will give us a future value of $17,204.28 sets in 10 years without writing the entire equation again, I'm just gonna skip to the second stuff that will be 10,000 times 1.275 The bracket stuff inside doesn't change. Only thing that changes is the exponents that will be four times 10. That'll be 40 as the exponents. It's a 1.275 to the power of 40 and then times 10,000. That will give us all right to any $9598.74. And lastly, for 15 years you'll have 10,000 times 1.275 It'll be 15 times four is the exponents of that 60 and 1.275 to the power of 60 times the 10,000 in front. That will give us the future value of 50,922 and 51 cents

Get More Help with this Textbook