Question
Asked Dec 12, 2019
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(a) If $1000 is borrowed at 9% interest, find the amounts due at the end of 3 years if the interest is compounded as follows. (Round your answers to the nearest cent.)

 
 
 
 
 
 
 
 
 
(iv) weekly
$
 
(v) daily
$
 
(vi) hourly
$
 
(vii) continuously
$
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Expert Answer

Step 1

It is given that $1000 is borrowed for 9% interest.

Step 2

Find the amounts due at the end of 3 years if the interest is compounded as follows.

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= 0.09 and t = 3. 100 Here, it is observed that P = $1000,r iv) Find the amount at the end of 3 years if the interest is compounded annually. nt In order to find the amount for annually, substitute n=1 in A= P|1+= п That is, A = P(1+r)'. Substitute P = $1000,r = 0.09 and t = 3 in A = P(1+r)'. A =1000(1+0.09) = 1000(1.09) = $1295.03

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Step 3

v) Find the amount at the end of 3 years i...

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nt In order to find the amount for daily, substitute n= 365 in A=P|1+ п 365t That is, A = P|1+ 365 365t Substitute P = $1000,r = 0.09 and t = 3 in A = P| 1+ 365 365-3 0.09 A = 1000| 1+ 365 1095 0.09 =1000| 1+ 365 = $1000.27

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