b)Vingafter July). (2)c)what kind of time will:lation(5)5) A bank advertises that it compounds continuously and will double your money in 10 years. Whatis the growth rate? (5)

Because the bank employs continuous compounding, your money will increase steadily over time. We…

Answered: b) Ving after July). (2) c) what kind…

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter5: Exponential And Logarithmic Functions

Section: Chapter Questions

Problem 37CT: On the day a grandchild is born, a grandparent deposits $2500 in a fund earning 7.5% interest,...

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Similar questions

An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000 Compare the values of the account after 9 yearswhen the interest is compounded annually, quarterly,monthly, and continuously.
Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25 interest,compounded continuously. How much will theaccount be warm after 25 years?
On the day a grandchild is born, a grandparent deposits $2500 in a fund earning 7.5% interest, compounded continuously. Determine the balance in the account on the grandchild’s 25th birthday.
An investment account was opened with aninitial deposit of 9,600 and earns 7.4 interest,compounded continuously. How much will theaccount be worth after 15 years?
Suppose that $12,000 is invested in a saving account paying 5.6% interest per year. (a)Write the formula for the amount in the account after t years if interest is compounded monthly. (b)Find the amount in the after 3 years if interest is compounded daily. (c)How long will it take for the amount in the account to grow to $20,000 if interest iscompounded continuously?
Jerome invests $18,000 at age 17. He hopes the investments will be worth $30,000 when he turns 26. If the interest compounds continuously, approximately what rate of growth will he need to achieve his goal? Is that a reasonable expectation?
New grandparents decide to invest 3200 per month in an annuity for their grandson, The account will pay interest per year which is compounded monthly. How much will be in the child's account at his twenty-first birthday?

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b) Ving after July). (2) c) what kind of time will: lation (5) 5) A bank advertises that it compounds continuously and will double your money in 10 years. What is the growth rate? (5)