E$5\mathrm{.}2($LO $1,2)$ Simple and Compound Interest Computations

Alan Jackson invests $\backslash (\backslash$$ $20,000\backslash )$ at $\backslash (8\backslash \%\backslash )$ annual interest, leaving the money invested without withdrawing any of the interest for $8$ years. At the end of the $8$ years, Alan withdraws the accumulated amount of money.

Instructions

Use Excel's financial functions to solve.

a Compute the amount Alan would withdraw assuming the investment earns interest compounded annually.

b Compute the amount Alan would withdraw assuming the investment earns interest compounded semiannually.

NOTE: Enter a formula, a cell reference, or a value $($if you are unable to reference a cell$),$ into the yellow shaded input cells.

a$.$ Total withdrawn

b$.$ Total withdrawn