Question

Suppose $5000 is invested at an annual interest rate of 4.15% if compounded continuously.

a) Compute the balance at the end of 16 years.

b) What is the doubling time (round to the nearest year)?

c) What will be the balance at the end of 16 years if computed quarterly?

Answer #1

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) this is the part I’m having the...

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...

Suppose $5,400 is invested in an account at an annual interest
rate of 3.9% compounded continuously. How long (to the nearest
tenth of a year) will it take the investment to double in size?
Answer:

How much will $100 grow to if invested at a continuously
compounded interest rate of 7.5% for 7 years? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
How much will $100 grow to if invested at a continuously
compounded interest rate of 7% for 7.5 years? (Do
not round intermediate calculation

1- For an annual interest rate of 10% compounded continuously
what it will be the effective annual interest rate?
2. For an annual interest rate of 10% compounded quarterly what
it will be the effective annual interest rate?
3. For a monthly interest rate of 1.2 % compounded quarterly
what it will be the effective annual interest rate?

How much will $100 grow to if invested at a continuously
compounded interest rate of 8.5% for 9 years? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
How much will $100 grow to if invested at a continuously
compounded interest rate of 9% for 8.5 years? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)

How much will $100 grow to if invested at a continuously
compounded interest rate of 12% for 7 years? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
Future Value =
How much will $100 grow to if invested at a continuously
compounded interest rate of 7% for 12 years? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
Future Value =

1) 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 9 years when
$4000 is deposited in a savings account drawing 5 1/4 $ % annual
interest compounded continuously. (Round your answer to the nearest
cent.)
(b)In how many years will the initial sum...

a. Compute the future value of $1,900 continuously compounded
for 7 years at an annual percentage rate of 9 percent. (Do not
round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.) b. Compute the future value of $1,900
continuously compounded for 5 years at an annual percentage rate of
13 percent. (Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.) c. Compute the future
value of $1,900 continuously compounded for...

a. Compute the future value of $1,900
continuously compounded for 7 years at an annual percentage rate of
8 percent. (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
Future value
$
b. Compute the future value of $1,900 continuously
compounded for 5 years at an annual percentage rate of 11 percent.
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
Future value
$
c. Compute...

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