Compound interest. An investor deposits $30,000 in Godel Municipal Bond Funds, at 4%

Chapter 0, Problem 31

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QUESTION:

Compound interest. An investor deposits $30,000 in Godel Municipal Bond Funds, at 4%. How much is the investment worth (rounded to the nearest cent) at the end of 1 yr, if interest is compounded:

a) annually?

b) semiannually?

c) quarterly?

d) daily (use 365 days for 1 yr)?

e) hourly?

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QUESTION:

Compound interest. An investor deposits $30,000 in Godel Municipal Bond Funds, at 4%. How much is the investment worth (rounded to the nearest cent) at the end of 1 yr, if interest is compounded:

a) annually?

b) semiannually?

c) quarterly?

d) daily (use 365 days for 1 yr)?

e) hourly?

ANSWER:

Step 1 of 3

To solve this task we'll use formula

\(A=P(1+i)^{t}\)

where P is amount of investing money, i is rated and t represents years.

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