When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 6 years when $7000 is deposited in a savings account drawing 5% annual interest compounded continuously. (Round your answer to the nearest cent.) (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S=7000(1+. 100(1+(0.0525)) S=$ 6(4) that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 6 years when $7000 is deposited in a savings account drawing 5% annual interest compounded continuously. (Round your answer to the nearest cent.) (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S=7000(1+. 100(1+(0.0525)) S=$ 6(4) that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest.
(a) Find the amount of money accrued at the end of 6 years when $7000 is deposited in a savings account drawing 5% annual interest compounded continuously. (Round your answer to the nearest cent.)
(b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.)
years
(c) Use a calculator to compare the amount obtained in part (a) with the amount S= 7000(1+.
S=$
*********
•7000(1+1/(0.0525))
6(4)
that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)
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