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You invest $7000 in an account bearing 5% interest for ten years. A. How much will the account be worth if compounded quarterly? What about monthly? Daily? B. What do you notice about the amount of additional money you make as the frequency of compounding increases?

Respuesta :

Answer:quarterly, monthly, daily

Step-by-step explanation:

quarterly: y=7000 (1+.05/4)'10(4)     answer y=11,505.34

monthly: y=7000 (1+.05/12)'10(12)    answer y=11,529.07

daily: y=7000 (1+.05/365)'10(365)    answer y=11,540.65

What do you notice about the amount of additional money you make as the frequency of compounding increases? The account is worth more

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