# An amount say #$800# is invested at a rate of interest of #5%# for #30# years. What is the amount at the end of the period if it is?

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(a) compounded every year

(b) compounded monthly

(c) compounded every week

(d) compounded continuously.

(a) compounded every year

(b) compounded monthly

(c) compounded every week

(d) compounded continuously.

##### 1 Answer

(a)

(c)

#### Explanation:

When we invest an amount say

However, when compounded, it depends on the fixed period after which it is compounded or rather how many times in a year interest is compounded. If it is compounded after every

the amount becomes

Here we have

**(a)** If compounded yearly i.e. once a year, as

**(b)** If compounded monthly i.e.

**(c)** If compounded weekly i.e.

**(d)** If compounded continuously, it approximates