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On September 3, 2008 you invested $1,000 at the annual risk-free rate of 7% until APR....

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Finance

On September 3, 2008 you invested $1,000 at the annual risk-freerate of 7% until APR. 18, 2009. Calculate the amount you willreceive on APR 18, 2009 if the annual 5% rate is compounded;

annually

quarterly

monthly

daily

continuously.

Answer & Explanation Solved by verified expert
4.0 Ratings (534 Votes)

Amount Invested 1000
Date of Investment 03-09-2008
Date untill 18-04-2009
Interest Rate 5%
No of Days investment is held 228
No of Days in a year 365
T 0.625 =228/365
Value of 'e' 2.71828
1) Annual Compounding
Maturity Amount =$C$2*((1+$C$5)^$C$8)
1031
2) Quarerly Compounding
Maturity Amount =$C$2*((1+$C$5/4)^($C$8*4))
1031.52602
3) Monthly Compounding
Maturity Amount =$C$2*(1+$C$5/12)^($C$8*12)
1031.658796
4) Daily Compounding
Maturity Amount =$C$2*((1+$C$5/365)^($C$8*365))
1031.723534
5) Continuous comoiunding
Maturity Amount =$C$2*$C$9^($C$5*$C$8)
1031.725719
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