Question

Find the amount to which $200 will grow under each of these conditions:

8% compounded annually for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent.
$________

8% compounded semiannually for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent.
$________  

8% compounded quarterly for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent.
$________

8% compounded monthly for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent.
$________

8% compounded daily for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent.
$_________

Answer 1

1.We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$200*(1.08)^8

=$200*1.85093021

which is equal to

=$370.19(Approx).

2.We use the formula:
A=P(1+r/200)^2n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$200(1+0.08/2)^(2*8)

=$200*1.872981246

=$374.60(Approx).

c.We use the formula:
A=P(1+r/400)^4n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$200(1+0.08/4)^(4*8)

=$200*1.884540592

=$376.91(Approx).

d.We use the formula:
A=P(1+r/1200)^12n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$200(1+0.08/12)^(12*8)

=$200*1.89245722

=$378.49(Approx).

5.

We use the formula:
A=P(1+r/365)^365n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$200(1+0.08/365)^(365*8)

=$200*1.89634789

which is equal to

=$379.27(Approx).