A B D E G H 2-4: Using the General Compound Interest Formula nt A = P.(1 + n A = P.[1+ Principal (P) Interest rate (r) Interest Earned (I) difference from previous compounding N/A $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% Number of Interest times Term Future Value compounded compounded (t in Years) per year (W) Annually 20 #DIV/0! Quarterly 20 Monthly 20 Weekly 20 Daily 20 Hourly 8760 20 1. Complete column with the correct number of times interest will be compounded each year based on the description in column C. (Hourly is given) Compounding Formula + Type here to search o D A B c E F H 11. Complete column with the correct number of times interest will be compounded each year based on the description 2 in column C. (Hourly is given) 4 2. Look at the Compound Interest Future Value Formula already in cell F4. "=A4"(1+B4/04)^(D4*E4)" 5 The Future Value should match from the Re-Invest Sheta for 2-3 with P = $20,000. 6 The formula for calculating future value is already in cell F4. Copy this formula to FS through F9. 7 8 3. Write a formula in cell G4 to determine the interest earned for this investment (=Future Value - Principal). Copy this 9 formula to cells GS through G9. 20 1 4. Enter a formula in H5 to calculate the difference from the Previous compounding method using the data in column G. 2 Then copy to H6 through H9. 23 24 5. Comment in the 'Answer Block' about the differences in the Future Values based on the different compoundings. Also 25 notice the changes in the amount of interest between the different compoundings: Explain? 26 27 Answer Block: 28 29