On July 1, 2001, a savings account has $1000. This account earns interest at an annual rate of 1.5% compoundedcontinuously. A competing bank is attempting to attract new customers by offering to add $20 immediately to any newaccount opened with a minimum $1000 deposit, and the new account would earn interest at the annual rate of 1.5%compounded semiannually. To choose one of the following three options on July 1, 2001, find the accumulated amount onJuly 1, 2003, for each option in parts (a) through (c) below.(a) Leave the money at the first bank.The accumulated amount is $(Do not round until the final answer. Then round to the nearest cent as needed.)

Answer Given P= $1000 ; t (time)= 2 years a.) If rate is 1.5% compounded continuously. S= Pert S=…

Answered: On July 1, 2001, a savings account has…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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