If $21500 is invested at an annual interest rate of 7%, find the value of the investment at the end of 10 years for the following compounding methods.

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Step-by-step explanation:

The applicable formula is ...

  A = P(1 +r/n)^(nt)

where P is the principal invested (21500), r is the annual interest rate (0.07), n is the number of times per year compounding occurs, and t is the number of years (10).

It is convenient to program a calculator or spreadsheet to compute these values. For the values we want, n = 1, 2, 12, 52, or 365.

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The formula for continuous compounding is ...

  A = Pe^(rt)

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As an example of the work, we can use weekly compounding:

  A = 21500(1 +.07/52)^(52·10) = 21500(1.00134615385^520)

  = 21500(2.01280499) = 43,275.3074 ≈ 43,275.31

(Full calculator precision needs to be used without any rounding until the final answer.)

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step-by-step explanation: