Answer parts d and e Find the interest earned on $10,000 invested for 4 years at 6% interest compounded as follows.a. Annuallyb. Semiannually (twice a year)c. Quarterlyd. Monthlye. Continuouslya. Compounding annually, the interest earned is $ 2624.77(Round to the nearest cent as needed.)b. Compounding semiannually, the interest earmed is $ 2667 70(Round to the nearest cent as needed.)c. Compounding quarterly, the interest eamed is $ 2689 86(Round to the nearest cent as needed)d. Compounding monthly, the interest eaned is $.(Round to the nearest cent as needed)

Time value of money (TVM) refers to the method used to measure the amount of money at different…

Answered: d. Monthly e. Continuously

Business

Finance

d. Monthly e. Continuously

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Answer parts d and e

Find the interest earned on $10,000 invested for 4 years at 6% interest compounded as follows.
a. Annually
b. Semiannually (twice a year)
c. Quarterly
d. Monthly
e. Continuously
a. Compounding annually, the interest earned is $ 2624.77
(Round to the nearest cent as needed.)
b. Compounding semiannually, the interest earmed is $ 2667 70
(Round to the nearest cent as needed.)
c. Compounding quarterly, the interest eamed is $ 2689 86
(Round to the nearest cent as needed)
d. Compounding monthly, the interest eaned is $.
(Round to the nearest cent as needed)

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