9514 1404 393
Answer:
6. $44,506.92
7. $20,197.88
8. $8,132.84
9. $20,137.53
Step-by-step explanation:
The formula for future value is ...
FV = P(1 +r/n)^(nt)
for principal P at annual interest rate r compounded n times per year for t years.
This formula is built in to most spreadsheet programs, which can be usefully used to calculate its value for different values of the variables. The spreadsheet function needs the interest rate per period (r/n) and the number of periods (nt).
Continuous compounding can be reasonably approximated by compounding 100 million times per year. Or the continuous compounding formula can be used:
FV = Pe^(rt)
The attached spreadsheet shows the values for these problems, and it shows the formula used to obtain them.
_____
Additional comment
Spreadsheet functions often work in terms of cash flow. A payment has one sign, and a value received has the opposite sign. Here, we have shown -FV( ) in the spreadsheet, because the given arguments would otherwise show the FV as negative. (More properly, the last function input would be the opposite of the principal value, as it is a payment being made.)
