Recall that the compound interest formula for continuous compounding is A(P, r, t) = Pert, where A is the future value of an investment of P dollars after t years at an interest rate of r. (a) Calculate and all evaluated at (120, 0.3, 12). (Round your answers to two decimal places.) ap' ar' at 1 ӘР %3D ar %3D at Interpret your answers. For a $ investment at % interest invested for years and compounded continuously, the accumulated amount is increasing at a rate of $ per $1 of principal, at a rate of $ per increase of 1 in r, and at a rate of $ per year. (b) What does the function of t tell about your investment? ap |(120, 0.3, t) Ap(120, 0.3, t) tells you the rate at which the accumulated amount in an account bearing % interest, compounded continuously, with a principal of $ is growing per $1 ---Select--- v in the --Select--- years after the investment.

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ISBN:9780470458365
Author:Erwin Kreyszig
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Chapter2: Second-order Linear Odes
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Recall that the compound interest formula for continuous compounding is
A(P, r, t) = Pert,
where A is the future value of an investment of P dollars after t years at an interest rate of r.
(a) Calculate
and
all evaluated at (120, 0.3, 12). (Round your answers to two decimal places.)
ap' ar'
at
1
ӘР
%3D
ar
%3D
at
Interpret your answers.
For a $
investment at
% interest invested for
years and compounded continuously, the accumulated amount is increasing at a rate of $
per $1 of principal, at a rate of $
per increase
of 1 in r, and at a rate of $
per year.
(b) What does the function
of t tell about your investment?
ap
|(120, 0.3, t)
Ap(120, 0.3, t) tells you the rate at which the accumulated amount in an account bearing
% interest, compounded continuously, with a principal of $
is growing per $1 ---Select--- v in the
--Select---
years after the investment.
Transcribed Image Text:Recall that the compound interest formula for continuous compounding is A(P, r, t) = Pert, where A is the future value of an investment of P dollars after t years at an interest rate of r. (a) Calculate and all evaluated at (120, 0.3, 12). (Round your answers to two decimal places.) ap' ar' at 1 ӘР %3D ar %3D at Interpret your answers. For a $ investment at % interest invested for years and compounded continuously, the accumulated amount is increasing at a rate of $ per $1 of principal, at a rate of $ per increase of 1 in r, and at a rate of $ per year. (b) What does the function of t tell about your investment? ap |(120, 0.3, t) Ap(120, 0.3, t) tells you the rate at which the accumulated amount in an account bearing % interest, compounded continuously, with a principal of $ is growing per $1 ---Select--- v in the --Select--- years after the investment.
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