6. For a banking scenario modeled by A=1,000e0.04, interpret the meaning of the constants in context. (You should be using the word "continuous" in your description.)

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Chapter6: Vector Spaces
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can you help me with number 6 and 7

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5. Write a model for a banking scenario where $250 is invested in an account that compounds
interest continuously at a rate of 2.5%.
250xe^ 0,025t
(a) How much has accrued after 3 year?
$264.47
(b) How long will it take to double the money?
O10 25t
2(2505=256€
2=e0025t
6. For a banking scenario modeled by A = 1,000e0.04 , interpret the meaning of the constants in
context. (You should be using the word "continuous" in your description.)
7. As a gift to your newborn nephew, you decide to put $500 into an investment. He will be
able to access the accumulated sum when he turns 18 or at a later date if he prefers. You are
comparing two investment options. One pays 5% interest compounded quarterly and the
other pays 4.5% interest compounded continuously. Which option should you choose?
Support your answer.
Transcribed Image Text:Explorations 5. Write a model for a banking scenario where $250 is invested in an account that compounds interest continuously at a rate of 2.5%. 250xe^ 0,025t (a) How much has accrued after 3 year? $264.47 (b) How long will it take to double the money? O10 25t 2(2505=256€ 2=e0025t 6. For a banking scenario modeled by A = 1,000e0.04 , interpret the meaning of the constants in context. (You should be using the word "continuous" in your description.) 7. As a gift to your newborn nephew, you decide to put $500 into an investment. He will be able to access the accumulated sum when he turns 18 or at a later date if he prefers. You are comparing two investment options. One pays 5% interest compounded quarterly and the other pays 4.5% interest compounded continuously. Which option should you choose? Support your answer.
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