Question

Use the formula for continuous compounding to compute the balance in the account after? 1, 5,...

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?%.

Homework Answers

Answer #1

equation to find balence of continues compounding is

here P is amount invested . here P=17000

r is Apr in decimal . here Apr= 3.75 . so r= 0.0375

t is number of years .

equation to find Apy is

1 year

put t=1

5 year

put t=5

20 year

t=20

now

this is in decimal . so multiply by 100.

sp  apy= 3.821%

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