Question

Principal: $1,000 APR: 4.5% Time: 10 years Find the equations for annually, quarterly, monthly and daily

Answer 1

Answer:

1. Annually (n = 1):

Aannual = $1,000 (1 = 1+ 0.045 1*10 1 = $1,000 (1+0.045) 10

2. Quarterly (n = 4):

Aquarterly = $1,000 (1+ 0.045 4 4*10 = $1,000 (1+0.01125) 40

3. Monthly (n = 12):

Amonthly = $1,000 (1+ 0.045 12 ) 12*10 = $1,000 (1+0.00375) 120

4. Daily (n = 365):

Adaily = $1,000 (1+0:045) 365+10 = $1,000 (1 + 0.045) 3650

Step-by-step explanation: