Find the amount to which $550 will grow under each of the following conditions. Do not round intermediate calculations. Round your answers to the nearest cent.

(A) 9% compounded annually for 5 years.

(B) 9% compounded semiannually for 5 years.

(C) 9% compounded quarterly for 5 years.

(D) 9% compounded monthly for 5 years.

(A) Fv = $864.2

(B) Fv = $1302.05

(C) Fv = $2003.4

(D) Fv = $96817.21

Explanation:

Giving the following information:

Initial investment = $550

We will use the final value formula:

FV=Present value * (1+i) ^n

(A) 9% compounded annually for 5 years.

Fv = 550 * (1.09) ^5=$864.2

(B) 9% compounded semiannually for 5 years.

Fv = 550 * (1.09) ^10 = $1302.05

(C) 9% compounded quarterly for 5 years.

Fv = 550 * (1.09) ^15 = $2003.4

(D) 9% compounded monthly for 5 years.

Fv = 550 * (1.09) ^60=$96817.21