Problem #4: You are to start with $32,000, and earn interest at a rate of 7% per annum. You are to calculate the value t
Posted: Sat Nov 27, 2021 5:21 pm
- Problem 4 You Are To Start With 32 000 And Earn Interest At A Rate Of 7 Per Annum You Are To Calculate The Value T 1 (63.34 KiB) Viewed 61 times
Problem #4: You are to start with $32,000, and earn interest at a rate of 7% per annum. You are to calculate the value that you have at the end of 5 years if that interest rate was to be compounded annually, semi-annually, quarterly, monthly, weekly, or daily (for 365 days every year). Put your result into a spreadsheet that appears as shown: A B с D E F 1 2 Nm + Initial Value <your value here> 3 4 5 Interest Rate <your rate here> 6 7 8 m Value in 5 years Continuous value Difference 9 1 10 11 Annual Semiannual Quarterly Monthly Weekly Daily 12 13 14 15 16 For the “Continuous value”, this will be the value at the end of 5 years if 7% were continuously compounded. It is the same value for each row. For each row, compute the “Difference” as being the “Continuous value” minus the “Value in 5 years”. What is the sum of the 6 differences? Problem #4: Answer correct to 2 decimals