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Use the formule for continuous compounding to compute the balance in the account after 1, 5, and 20 years. Also, find the APY for the account A$17,000 deposit in an account with an APR of 4.5%. MONT

Use the formule for continuous compounding to compute the balance in the account after 1, 5, and 20 years. Also, find the APY for the account A$17,000 deposit in an account with an APR of 4.5%. MONT

Essentials Of Investments
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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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 $17,000 deposit in an account with an APR of 4.5%. The balance in the account after 1 year is approximately $ (Round to the nearest cent 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 $17,000 deposit in an account with an APR of 4.5%. The balance in the account after 1 year is approximately $ (Round to the nearest cent as needed.)
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