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$100,000 is invested for 20 years at 5%. What are the proceeds using: simple interest annual compound interest semi-annual compounding? In the question above, what

  1. $100,000 is invested for 20 years at 5%. What are the proceeds using:
  1. simple interest
  2. annual compound interest
  3. semi-annual compounding?

  1. In the question above, what must the annual compounding rate be in order to produce the same proceeds as 5% semi-annual? What must the quarterly compounding rate be in order to produce the same proceeds as 5% semi-annual?

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