If $19,000.00 is invested in an account for 30 years.. Find the value of the investment at the end of 30 years if the interest is: (a) 6% simple interest: (b) 6% compounded monthly:
If $19,000.00 is invested in an account for 30 years.. Find the value of the investment at the end of 30 years if the interest is: (a) 6% simple interest: (b) 6% compounded monthly:
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![**Investment Growth Over 30 Years**
If $19,000.00 is invested in an account for 30 years, calculate the investment's value at the end of 30 years under the following interest conditions:
(a) **6% Simple Interest:**
- Calculate using the formula for simple interest:
\[ A = P(1 + rt) \]
where \( A \) is the total amount, \( P \) is the principal amount ($19,000), \( r \) is the interest rate (6% or 0.06), and \( t \) is the time period in years (30 years).
(b) **6% Compounded Monthly:**
- Calculate using the formula for compound interest:
\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]
where \( A \) is the total amount, \( P \) is the principal amount ($19,000), \( r \) is the annual interest rate (0.06), \( n \) is the number of compounding periods per year (12), and \( t \) is the time in years (30 years).
**Question Help:**
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Transcribed Image Text:**Investment Growth Over 30 Years**
If $19,000.00 is invested in an account for 30 years, calculate the investment's value at the end of 30 years under the following interest conditions:
(a) **6% Simple Interest:**
- Calculate using the formula for simple interest:
\[ A = P(1 + rt) \]
where \( A \) is the total amount, \( P \) is the principal amount ($19,000), \( r \) is the interest rate (6% or 0.06), and \( t \) is the time period in years (30 years).
(b) **6% Compounded Monthly:**
- Calculate using the formula for compound interest:
\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]
where \( A \) is the total amount, \( P \) is the principal amount ($19,000), \( r \) is the annual interest rate (0.06), \( n \) is the number of compounding periods per year (12), and \( t \) is the time in years (30 years).
**Question Help:**
- **Video 1:** [Access video explanation of simple interest]
- **Video 2:** [Access video explanation of compound interest]
- **Message Instructor:** [Contact your instructor for further assistance]
**Submit Question:** [Button to submit your answers]
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