2. For this exercise, include the formula you usedand how you set up the calculation. For part c,algebraic solving processes are to be demonstrated.A student receives an award of $2000 and decides toinvest that money for six years. To the nearest cent,how much money will be in the account at the endof the six years if the account earns:a. 4.2% compounded quarterly?b. 4.2% compounded continuously? c. At 4.2% interest compounded continuously, howlong will it take the investment to grow to $5000?Round your answer to the nearest year.

Question
Asked Dec 12, 2019
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2. For this exercise, include the formula you used
and how you set up the calculation. For part c,
algebraic solving processes are to be demonstrated.
A student receives an award of $2000 and decides to
invest that money for six years. To the nearest cent,
how much money will be in the account at the end
of the six years if the account earns:
a. 4.2% compounded quarterly?
b. 4.2% compounded continuously?
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2. For this exercise, include the formula you used and how you set up the calculation. For part c, algebraic solving processes are to be demonstrated. A student receives an award of $2000 and decides to invest that money for six years. To the nearest cent, how much money will be in the account at the end of the six years if the account earns: a. 4.2% compounded quarterly? b. 4.2% compounded continuously?

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c. At 4.2% interest compounded continuously, how
long will it take the investment to grow to $5000?
Round your answer to the nearest year.
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c. At 4.2% interest compounded continuously, how long will it take the investment to grow to $5000? Round your answer to the nearest year.

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Expert Answer

Step 1

From the given,

P = 2000

n = 6

r = 4.2% = 0.042

Step 2

a) Compounded quarterly at 4.2% interest

Compound interest formula

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nt A = P| 1+- Where, P = initial amount r =rate of interest n= number of times compounded (For quarterly n=4 ) t = number of years

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Step 3

Then,

...
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4x6 0.042 A = 2000| 1+ 4 = 2000x1.0105²4 = 2000x1.28490... A = 2569.81

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