Question

The rate of a continuous money flow starts at $800 and increases exponentially at 3% per year for 5 years. Find the present value and final amount if interest earned is 4% compounded continuously.

a) The present value is?

b) The final amount is?

(Do not round until the final answer. Then round to the nearest cent as needed.)

Answer #1

An exponential growth is e^r, where r is rate of growth and e is 2.718.

Present value is $4251.17

Final Value is $4789.35

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...

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...

Find the compound amount for the deposit and the amount of
interest earned. $7600 at 8 % compounded quarterly for 8 years. The
compound amount after 8 years is?
(Do not round until the final answer. Then round to the nearest
cent as needed.)
The amount of interest earned is
(Do not round until the final answer. Then round to the nearest
cent as needed.)

Find the present value P of a continuous income flow of
c(t) dollars per year using
P =
t1
c(t)e−rt dt,
0
where t1 is the time in years and r
is the annual interest rate compounded continuously. (Round your
answer to the nearest dollar.)
c(t) = 100,000 + 4000t, r = 5%, t1 = 8

1. A 6?-month ?$9000 Treasury bill with discount rate 8.671?%
was sold in 2009. Find a. the price of the?
T-bill, and b. the actual interest rate paid by
the Treasury.
a. The price of the? T-bill is ?$
?(Round to the nearest dollar as? needed.)
2. Suppose that ?$30,000 is invested at 7?% interest. Find the
amount of money in the account after 8 years if the interest is
compounded annually.
If interest is compounded? annually, what is the...

Find the accumulates present value of the following continuous
income stream at rate R(t), for the given time T and interest
rate k, compounded continuously
R(t)=0.01t+100, T=10, k=4%
Round to nearest cent as needed

The function F(X)= 700e^0.03x represents the rate of flow of
money in dollars per year. Assume a 10 year period at 5 percent
compounded continuously. A. Find the present value B. the
accumulated amount of money flow at t=10?

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...

8.6343 Q13
Determine the amount of money that will be accumulated in an
account that pays compound interest, given the initial principal
of $28 comma 800 invested at 2.81% annual interest for 7 years
compounded
(a) daily (n=365); =
(b) continuously. =
(Round to the nearest cent as needed.)

1.Find the present value of the following ordinary annuities.
Round your answer to the nearest cent.
Amount per Payment
Payment at End of Each
Time (Years)
Rate of Investment
Present Value
$3,300
6 months
8
12%
$
2. Find the amount of the following annuities due and interest
earned. Round your answer to the nearest cent.
Amount of
Each Deposit
Period
Rate
Time
(Years)
Amount of
Annuity
$7,500
quarterly
8%
8
$
3.Find the amount of each payment needed to...

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