Use the formula for continuous compounding to compute the balance in the account after 1, 5, and 20 years. Also, find the APY for the account. A $16,000 deposit in an account with an APR of 4.75%. The balance in the account after 1 year is approximately $ 16,778.34. (Round to the nearest cent as needed.) The balance in the account after 5 years is approximately $ 20,289.20. (Round to the nearest cent as needed.) The balance in the account after 20 years is approximately $ 41,371.35. (Round to the nearest cent as needed.) The APY for the account is approximately 4.86 % (Round to two decimal places as needed.)

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
icon
Related questions
Question
Use the formula for continuous compounding to compute the balance in the account after 1, 5, and 20 years. Also,
find the APY for the account.
A $16,000 deposit in an account with an APR of 4.75%.
The balance in the account after 1 year is approximately $ 16,778.34.
(Round to the nearest cent as needed.)
The balance in the account after 5 years is approximately $ 20,289.20.
(Round to the nearest cent as needed.)
The balance in the account after 20 years is approximately $ 41,371.35.
(Round to the nearest cent as needed.)
The APY for the account is approximately 4.86 %
(Round to two decimal places as needed.)
Transcribed Image Text:Use the formula for continuous compounding to compute the balance in the account after 1, 5, and 20 years. Also, find the APY for the account. A $16,000 deposit in an account with an APR of 4.75%. The balance in the account after 1 year is approximately $ 16,778.34. (Round to the nearest cent as needed.) The balance in the account after 5 years is approximately $ 20,289.20. (Round to the nearest cent as needed.) The balance in the account after 20 years is approximately $ 41,371.35. (Round to the nearest cent as needed.) The APY for the account is approximately 4.86 % (Round to two decimal places as needed.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,