Just Part B When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt = rS, where r is the annual rate of interest.1(a) Find the amount of money accrued at the end of 5 years when $5000 is deposited in a savings account drawing 5% annual interest compounded continuously. (Round your answer to the4nearest cent.)6500.88(b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.)3X years(c) Use a calculator to compare the amount obtained in part (a) with the amount S = 5000 1 + (0.0525)5(4)that is accrued when interest is compounded quarterly. (Round your answer tothe nearest cent.)S = $ 6489.79

To calculate the number of years when the initial sum gets doubled.

Answered: (b) In how many years will the initial…

Math

Calculus

(b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) X years

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter4: Exponential And Logarithmic Functions

Section: Chapter Questions

Problem 11T: Suppose that $12,000 is invested in a saving account paying 5.6% interest per year. (a)Write the...

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Question

100%

Just Part B

When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt = rS, where r is the annual rate of interest.
1
(a) Find the amount of money accrued at the end of 5 years when $5000 is deposited in a savings account drawing 5% annual interest compounded continuously. (Round your answer to the
4
nearest cent.)
6500.88
(b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.)
3
X years
(c) Use a calculator to compare the amount obtained in part (a) with the amount S = 5000 1 + (0.0525)
5(4)
that is accrued when interest is compounded quarterly. (Round your answer to
the nearest cent.)
S = $ 6489.79

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