Use the compound interest formulas, a = p (1 + rn ) nt and a = pe rt, to solve. round answers to the nearest cent. find the accumulated value of an investment of $10,000 for 5 years at an interest rate of 5.5% if the money is a. compounded semiannually. b. compounded monthly. c. compounded continuously.

(a) $13116.51

(b) $1315.03

(c) $12762.81

Explanation:

We have given principal amount P = $10000

Rate of interest r = 5.5 %

Time = 5 years

(a) When compounded semiannually

Rate of interest %

Time period n= 5×2=10 period  

So amount after 5 year

(b)  When compounded monthly

Rate of interest %

Time period n= 5×12=60 period  

So amount after 5 year

(c) When compounded continuously

Rate of interest = 5.5 %

Time period n= 5 year

So amount after 5 year