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 7 years when $3000 is deposited in a savings account drawing 52% 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 = - 3000(1+1 (0.0575))"(*) that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.) S=$
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 7 years when $3000 is deposited in a savings account drawing 52% 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 = - 3000(1+1 (0.0575))"(*) that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.) S=$
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
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ZILLDIFFEQMODAP11 3.1.010.
(b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.)
years
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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 7 years when $3000 is deposited in a savings account drawing 5 % annual interest compounded continuously. (Round your answer to the nearest cent.)
$
(c) Use a calculator to compare the amount obtained in part (a) with the amount S = 3000 1 +
S = $
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7(4)
3000(1+1(0.0575)) (*)
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PRACTICE ANOTHER
that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)
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