The interest on a particular savings account is compounded continuously. The account initially had $2,200 deposited in it. The worth of the account after t-years can be calculated using the formula: A(t)=2200e0$1 (a) By what percent will the worth of the account increase per year? Round to the nearest hundredth of a percent. (b) To the nearest tenth of a year, how long will it take for the worth of the account to triple? (c) If another investment began with a principal of $2,500 and earned simplest interest of 3.8% applied once per year, which investment would be worth more after 10 years? Justify
The interest on a particular savings account is compounded continuously. The account initially had $2,200 deposited in it. The worth of the account after t-years can be calculated using the formula: A(t)=2200e0$1 (a) By what percent will the worth of the account increase per year? Round to the nearest hundredth of a percent. (b) To the nearest tenth of a year, how long will it take for the worth of the account to triple? (c) If another investment began with a principal of $2,500 and earned simplest interest of 3.8% applied once per year, which investment would be worth more after 10 years? Justify
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The interest on a particular savings account is compounded continuously. The account initially had $2,200 deposited in it. The worth of the account after t-years can be calculated using the formula: A(t)=2200e0$1 (a) By what percent will the worth of the account increase per year? Round to the nearest hundredth of a percent. (b) To the nearest tenth of a year, how long will it take for the worth of the account to triple? (c) If another investment began with a principal of $2,500 and earned simplest interest of 3.8% applied once per year, which investment would be worth more after 10 years? Justify
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