eBook Problem Walk-Through

Find the amount to which $600 will grow under each of these conditions:

1. 4% compounded annually for 5 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $

2. 4% compounded semiannually for 5 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $

3. 4% compounded quarterly for 5 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $

4. 4% compounded monthly for 5 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $

5. 4% compounded daily for 5 years. Assume 365-days in a year. Do not round intermediate calculations. Round your answer to the nearest cent.

   $

6. Why does the observed pattern of FVs occur?