Question

Use the formula for continuous compounding to compute the balance in the account after 1, 5, and 20 years. Also, find the APY for the account. A $2000 deposit in an account with an APR of 3%. The balance in the account after 1 year is approximately [...]

Answer #1

Future value for continuous compunding = Present value * e^( r*t )

e = 2.7183

r = interest rate = 3%

t = time = 1 year

Future value = 2000 * 2.7183^( 0.03*1 ) = 2061

t = time = 5 years

Future value = 2000 * 2.7183^( 0.03*5 ) = 2323.67

t = time = 20 years

Future value = 2000 * 2.7183^( 0.03*20 ) = 3644.24

Annual percentage yeild for continuos compounding = e^r - 1

e = 2.7183

r = interest rate = 3%

APY = 2.7183^0.03 - 1 = 3.04%

Balance in the account after 1 year = 2061 (as calculated above)

Use the formula for continuous compounding to compute the
balance in the account after 1, 5, and 20 years. Also, find the
APY for the account. A $7000 deposit in an account with an APR of
3.3%.
The balance in the account after 1 year is approximately $
The balance in the account after 5 years is approximately $
The balance in the account after 20 years is approximately $
(Round to the nearest cent as needed.)

Use the formula for continuous compounding to compute the
balance in the account after 1, 5, and 20 years. Also find the APY
for the account.
A $3000 deposit in an account with an APR of 8%
Year 1 =
Year 5+
Year 20=

Use the formula for continuous compounding to compute the
balance in the account after? 1, 5, and 20 years.? Also, find the
APY for the account. A?=$17,000 deposit in an account with an APR
of 3.75?%.

Direction: Compounding More than once a Year. Use the
appropriate compound interest formula to compute the balance in
each account after the stated period of time.
1.) $10,000 is invested for 5 years with an APR of
2.75% and monthly compounding.
Directions: Annual Percentage Yield (APV). Find the annual
percentage yield (to the nearest 0.01%) in each case.
1.) A bank offers an APR of 3.2% compounded
monthly.
Directions: Continuous Compounding. Use the formula for
continuous compounding to compute the...

Direction: Compounding More than once a Year. Use the
appropriate compound interest formula to compute the balance in
each account after the stated period of time.
1.) $10,000 is invested for 5 years with an APR of
2.75% and monthly compounding.
Directions: Annual Percentage Yield (APV). Find the annual
percentage yield (to the nearest 0.01%) in each case.
1.) A bank offers an APR of 3.2% compounded
monthly.
Directions: Continuous Compounding. Use the formula for
continuous compounding to compute the...

Use the appropriate compound interest formula to compute the
balance in the account after the stated period of time ?$8000 is
invested for 11 years with an APR of 5?% and monthly compounding.
The balance in the account after 11 years is ?$

Use the compound interest formula for compounding more
than once a year to determine the accumulated balance after the
stated period.
49) $2500 deposit at an APR of7.5% with monthly
compounding for 7 years
A ) $4219.25 B) $2611.45 C) $3375.40 D)
$74,802.06

Directions: Simple Interest. Calculate the amount of money you
will have in each account after 5 years, assuming that the account
earns simple interest.
1.) You deposit $1500 in an account with an annual
interest rate of 4%?
Direction: Compound Interest. Use the compound interest formula
to compute the balance in each account after the stated period of
time, assuming that interest is compounded annually.
1.) $3,000 is invested at a APR of 1.8% for 12
years.?

5A-1
FV CONTINUOUS COMPOUNDING If you receive $15,000 today and can
invest it at a 6% annual rate compounded continuously, what will be
your ending value after 15 years?
5A-2
PV CONTINUOUS COMPOUNDING In 7 years, you are scheduled to
receive money from a trust established for you by your
grandparents. When the trust matures there will be $200,000 in the
account. If the account earns 9% compounded continuously, how much
is in the account today?
5A-3
FV CONTINUOUS COMPOUNDING...

1. Assuming simple interest determine Paul's initial deposit if
his account grew to $4,500 in 7 years, 6 months at an APR of
2.75%
2. Assuming continuous compounding, how much would Susan have to
deposit in her account if it grew to $6,000 over 5 years 9 months
with an APR of 2.95% ?

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