For Exercises 11–16, suppose that P dollars in principal is invested at an annual interest rate r . For interest compounded n times per year, the amount A ( t ) in the account after t years is given by A ( t ) = P ( 1 + r n ) n t . If interest is compounded continuously, the amount is given by A ( t ) = P e r t . Suppose an investor deposits $5000 in an account for 8 yr for which the interest is compounded quarterly. Find the total amount of money in the account for the following interest rates. Compare your answers and comment on the effect of interest rate on an investment. a. r = 4.5 % b. r = 5.5 % c. r = 7.0 % d. r = 9.0 %
For Exercises 11–16, suppose that P dollars in principal is invested at an annual interest rate r . For interest compounded n times per year, the amount A ( t ) in the account after t years is given by A ( t ) = P ( 1 + r n ) n t . If interest is compounded continuously, the amount is given by A ( t ) = P e r t . Suppose an investor deposits $5000 in an account for 8 yr for which the interest is compounded quarterly. Find the total amount of money in the account for the following interest rates. Compare your answers and comment on the effect of interest rate on an investment. a. r = 4.5 % b. r = 5.5 % c. r = 7.0 % d. r = 9.0 %
Solution Summary: The author calculates the total amount of money in the account after 8 years if compounded quarterly for 5000 invested at 4.5%.
For Exercises 11–16, suppose that P dollars in principal is invested at an annual interest rate r. For interest compounded n times per year, the amount
A
(
t
)
in the account after t years is given by
A
(
t
)
=
P
(
1
+
r
n
)
n
t
. If interest is compounded continuously, the amount is given by
A
(
t
)
=
P
e
r
t
.
Suppose an investor deposits $5000 in an account for 8 yr for which the interest is compounded quarterly. Find the total amount of money in the account for the following interest rates. Compare your answers and comment on the effect of interest rate on an investment.
a.
r
=
4.5
%
b.
r
=
5.5
%
c.
r
=
7.0
%
d.
r
=
9.0
%
Exercise 4.
Log(1 – iV3)² =
a. 2Log(1 – iV3)
b. Log(1+ iv3)
c. 2Log(1 + iv3)
d. None of these
3. Determine the exponential function that passes through the points ( 2, 8) and (-1 1) (3 pts)
Chp
five thousand dollars is deposited into a savings account that has interest compounded continuously. suppose after 3 years the account has grown to six thousand dollars.
A.) find the yearly interest rate r for this savings account
B.) how long will it take for the initial balance to double
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