Question

What is the future value in 3 years of RM 1000 invested in a account with a stated annual interest rate of 

Answer 1

future value= principal (1+r)^n
principal=1000
interest=8%
n=3 years

a.) compounded annually

amount= 1000(1+8%)^3=1,259.71

b.) compounded semi-annually

amount= 1000(1+8%/2)^3(2)=1,265.32

c.) compounded quarterly

amount=1000(1+8%/4)^3(4)=1,268.24

d.) compounded monthly

amount= 1000(1+8%/12)^3(12)=1,270.24

1,270.24