Suppose that $12,000 is invested in a savings 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 account 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 is compounded continuously?

Suppose that $12,000 is invested in a savings 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 account 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 is compounded continuously?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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