### Investment Compound Interest Calculation**Problem Statement:**Find the value of each of these investments at the end of the period specified below.---**Investments:**(a) $2500 invested at $5 \frac{1}{4} \% $ compounded annually for five years.(b) $9000 invested at 9% compounded semiannually for eleven years.---**Solutions:**(a) Calculate the amount in the account after five years.- **Principal (P):** $2500- **Annual Interest Rate (r):** $5 \frac{1}{4} \% = 5.25\%)- **Number of Compounding Periods per Year (n):** 1 (annually)- **Time (t):** 5 yearsUse the formula for compound interest:\[ A = P \left(1 + \frac{r}{100n}\right)^{nt} \]The amount in the account after five years is \( \$ \_\_\_ $.*(Round to the nearest cent as needed.)*---(b) Calculate the amount in the account after eleven years.- **Principal (P):** $9000- **Annual Interest Rate (r):** 9%- **Number of Compounding Periods per Year (n):** 2 (semiannually)- **Time (t):** 11 yearsUse the formula for compound interest:\[ A = P \left(1 + \frac{r}{100n}\right)^{nt} \]The amount in the account after eleven years is $ \$ \_\_\_ $.*(Round to the nearest cent as needed.)*

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Find the value of each of these investments at the end of the period specified below. (a) $2500 invested at 5-% compounded annually for five years (b) $9000 invested at 9% compounded semiannually for eleven years (a) The amount in the account after five years is $ (Round to the nearest cent as needed.) (b) The amount in the account after eleven years is $ (Round to the nearest cent as needed.)

Find the value of each of these investments at the end of the period specified below. (a) $2500 invested at 5-% compounded annually for five years (b) $9000 invested at 9% compounded semiannually for eleven years (a) The amount in the account after five years is $ (Round to the nearest cent as needed.) (b) The amount in the account after eleven years is $ (Round to the nearest cent as needed.)

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Question

### Investment Compound Interest Calculation

**Problem Statement:**
Find the value of each of these investments at the end of the period specified below.

---

**Investments:**

(a) $2500 invested at $5 \frac{1}{4} \% $ compounded annually for five years.

(b) $9000 invested at 9% compounded semiannually for eleven years.

---

**Solutions:**

(a) Calculate the amount in the account after five years.
- **Principal (P):** $2500
- **Annual Interest Rate (r):** $5 \frac{1}{4} \% = 5.25\%)
- **Number of Compounding Periods per Year (n):** 1 (annually)
- **Time (t):** 5 years

Use the formula for compound interest:
\[ A = P \left(1 + \frac{r}{100n}\right)^{nt} \]

The amount in the account after five years is \( \$ \_\_\_ $.

*(Round to the nearest cent as needed.)*

---

(b) Calculate the amount in the account after eleven years.
- **Principal (P):** $9000
- **Annual Interest Rate (r):** 9%
- **Number of Compounding Periods per Year (n):** 2 (semiannually)
- **Time (t):** 11 years

Use the formula for compound interest:
\[ A = P \left(1 + \frac{r}{100n}\right)^{nt} \]

The amount in the account after eleven years is $ \$ \_\_\_ $.

*(Round to the nearest cent as needed.)*

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