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Compound interest. An investor deposits $30,000 in Godel Municipal Bond Funds, at 4%
Chapter 0, Problem 31(choose chapter or problem)
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?
Questions & Answers
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.