If $15, 000 is invested at a rate of 4.25% per year for 23 years, find value of the investment to the nearest penny given the nt following compounding periods. Use either A = P(1+ )" or A = Pe".
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Part A: A= ? SEMIANNUALLY
Part B: A=? MONTHLY
Part C: A=? DAILY
![If $15,000 is invested at a rate of 4.25% per year for 23 years, find the value of the investment to the nearest penny given the following compounding periods. Use either:
\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]
or
\[ A = Pe^{rt}. \]
Explanation:
- **Variables**:
- \( A \) is the future value of the investment/loan, including interest.
- \( P \) is the principal investment amount (the initial deposit or loan amount).
- \( r \) is the annual interest rate (decimal).
- \( n \) is the number of times that interest is compounded per year.
- \( t \) is the number of years the money is invested or borrowed for.
The first formula is used for situations where the interest is compounded at specific intervals (like monthly, quarterly, etc.), while the second formula uses continuous compounding.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c8e2fea-b42c-4a74-84d4-3cd5b768b27b%2F2f8db9e8-1a12-4769-8277-f13b805331d7%2Fjwfhuab_processed.png&w=3840&q=75)
Here, P = $15,000, t = 23 years, r = 4.25% = 0.0425
Part A.
For compounding semiannually, n=2
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