The amount of money A as a function of time in years t, given an initial amount P, an interest rate r, and compounded n times per year is: A = P(1 + r/n)nt The amount compounded continuously is: A = P ert The amount of an account at a particular time is given by: A = 5000(1 + 0.035/12)60 What is the interest rate? 2.9% 1.8% 3.5% If the interest is compounded continuously, what is the amount after the same time has passed? 5956 6028 6145
The amount of money A as a function of time in years t, given an initial amount P, an interest rate r, and compounded n times per year is: A = P(1 + r/n)nt The amount compounded continuously is: A = P ert The amount of an account at a particular time is given by: A = 5000(1 + 0.035/12)60 What is the interest rate? 2.9% 1.8% 3.5% If the interest is compounded continuously, what is the amount after the same time has passed? 5956 6028 6145
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter4: Exponential And Logarithmic Functions
Section4.2: The Natural Exponential Function
Problem 2E
Related questions
Question
The amount of money A as a function of time in years t, given an initial amount P, an interest rate r, and compounded n times per year is:
A = P(1 + r/n)nt
The amount compounded continuously is:
A = P ert
The amount of an account at a particular time is given by:
A = 5000(1 + 0.035/12)60
What is the interest rate?
|
2.9% |
|
1.8% |
|
3.5% |
If the interest is compounded continuously, what is the amount after the same time has passed?
|
5956 |
|
6028 |
|
6145 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning