Question

When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is,

dS/dt = rS,

where r is the annual rate of interest.

(a)

Find the amount of money accrued at the end of 8 years when $5000 is deposited in a savings account drawing 5

3

4

% annual interest compounded continuously. (Round your answer to the nearest cent.)

$

(b)

In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.)

years

(c)

Use a calculator to compare the amount obtained in part (a) with the amount S = 5000

1 +

1

4

(0.0575)

	8(4)

that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)

S = $

Answer 1

Thank you so much sir