You have $10,000 you want to invest in a bank. You have three different banks to choose from, each has a different way interest is calculated. t represents the amount of time the money is invested for. A is your Annuity, which is the amount of money you have in your account at any given time. This means our function would be A (t). In each situation, answer the following questions to see which bank would be best. 1. How much money will you have in 12 year? 2. How long will it take for you to reach $13,000? Bank 1: You are offered $600 in Simple Interest each year (this is 6% of your original investment) Bank 2: You are offered 6% interest that Compounds Annually. This means your 6% interest is calculated every year based on how much money you have in the bank. Bank 3: You are offered 6% interest that Compounds Continuously.
You have $10,000 you want to invest in a bank. You have three different banks to choose from, each has a different way interest is calculated. t represents the amount of time the money is invested for. A is your Annuity, which is the amount of money you have in your account at any given time. This means our function would be A (t). In each situation, answer the following questions to see which bank would be best. 1. How much money will you have in 12 year? 2. How long will it take for you to reach $13,000? Bank 1: You are offered $600 in Simple Interest each year (this is 6% of your original investment) Bank 2: You are offered 6% interest that Compounds Annually. This means your 6% interest is calculated every year based on how much money you have in the bank. Bank 3: You are offered 6% interest that Compounds Continuously.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Transcribed Image Text:You have $10,000 you want to invest in a bank. You have three different banks to choose from, each has
a different way interest is calculated. t represents the amount of time the money is invested for. A is
your Annuity, which is the amount of money you have in your account at any given time. This means our
function would be A (t). In each situation, answer the following questions to see which bank would be
best.
1. How much money will you have in 12 year?
2. How long will it take for you to reach $13,000?
Bank 1: You are offered $600 in Simple Interest each year (this is 6% of your original investment)
Bank 2: You are offered 6% interest that Compounds Annually. This means your 6% interest is calculated
every year based on how much money you have in the bank.
Bank 3: You are offered 6% interest that Compounds Continuously.
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