Answer:
see below
Step-by-step explanation:
The applicable formula is ...
A = P(1 +r/n)^(nt)
where P is the principal invested (21500), r is the annual interest rate (0.07), n is the number of times per year compounding occurs, and t is the number of years (10).
It is convenient to program a calculator or spreadsheet to compute these values. For the values we want, n = 1, 2, 12, 52, or 365.
- annual: $42,293.75
- semi-annual: $42,780.46
- monthly: $43,207.72
- weekly: $43,275.31
- daily: $43,292.78
- continuous: $43,295.68
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The formula for continuous compounding is ...
A = Pe^(rt)
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As an example of the work, we can use weekly compounding:
A = 21500(1 +.07/52)^(52·10) = 21500(1.00134615385^520)
= 21500(2.01280499) = 43,275.3074 ≈ 43,275.31
(Full calculator precision needs to be used without any rounding until the final answer.)
