Question

1. Calculate the compound amount. Use the compound amount formula and a calculator. (Round your answer to two decimal places.)

P = $1700, r = 5% compounded semiannually, t = 12 years

2. Calculate the future value. (Round your answer to two decimal places.)

P = $8000, r = 5.5% compounded quarterly, t = 3 years

3.Calculate the future value. (Round your answer to two decimal places.)

P = $29,000, r = 8% compounded monthly, t = 5 years

Answer 1

1) A = P(1 + r/2)^2t

       = 1700 * (1 + 0.05/2)^{2 * 12}

       = 1700 * (2.05/2)²⁴

       = 3074.83

Compound Interest = A - P

                               = 3074.83 - 1700 = 1374.83

2) Future Value = P(1 + r/4)^4t

                         = 8000 * (1 + 0.055/4)^{4 * 3}

                         = 8000 * (4.055/4)¹²

                         = 9424.55

3) Future Value = P(1 + r/12)^12t

                          = 29000 * (1 + 0.08/12)^{12 * 5}

                          = 29000 * (12.08/12)⁶⁰

                          = 43205.53