Identify the value used for each variable in the compound interest formula.  APR =  n =  t =  P =  What is the total number of compounding periods?  If Alexis had chosen an investment that was compounded monthly how many compounding periods would there be in the 18 years?  If Alexis had chosen an investment that was compounded quarterly how many compounding periods would there be in the 18 years?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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  1. Alexis deposited $500 into an interest-earning account when her son was born. The account earns 2.18% compounded annually and Alexis wants to know how much money will be in the account when her son turns 18 years old.

    1. Identify the value used for each variable in the compound interest formula. 
      • APR = 
      • n = 
      • t = 
      • P = 
    2. What is the total number of compounding periods? 
    3. If Alexis had chosen an investment that was compounded monthly how many compounding periods would there be in the 18 years? 
    4. If Alexis had chosen an investment that was compounded quarterly how many compounding periods would there be in the 18 years? 
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