Use the Formula $A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$

question 7

Short Answer

Use the formula $A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$ to find the amount for the investments. $2,200 for 5 years at 1.5% compounded annually. Please round the answer to the nearest hundredth. $A =$ $__________ $2,200 for 5 years at 1% compounded quarterly. Please round the answer to the nearest hundredth. $A =$ $__________ Determine which investment amounts to more. __________

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Definitions:

Gratuitous

Referring to something given without expecting anything in return, often related to acts of kindness or voluntary transactions without compensation.

Preexisting Duty

A legal concept indicating that if someone is already legally obligated to perform a certain action, that action cannot be used as consideration for a new contract.

Consideration

The value (such as money, goods, or services) that is given in exchange for a contractual promise or action.

Consideration

The value, such as money, promised, given, or done that induces a party to enter into a contract.