If interest in a bank account is compounded continuously, the amount grows at a rate that is proportional to the amount present in the account. Interest that is compounded daily very closely approximates this situation. Determine theamount in an account after one year if $1000 is placed in the account and it pays 5% interest per year, compounded continuously.After 1 year the account balance will be approximately $.(Round to the nearest cent as needed.)

Solution: Given data, Initial amount P = $1000 rate r= 5% = 0.05 According to continuously…

If interest in a bank account is compounded continuously, the amount grows at a rate that is proportional to the amount present in the account. Interest that is compo amount in an account after one year if $1000 is placed in the account and it pays 5% interest per year, compounded continuously. After 1 year the account balance will be approximately $. (Round to the nearest cent as needed.)

If interest in a bank account is compounded continuously, the amount grows at a rate that is proportional to the amount present in the account. Interest that is compo amount in an account after one year if $1000 is placed in the account and it pays 5% interest per year, compounded continuously. After 1 year the account balance will be approximately $. (Round to the nearest cent as needed.)

Algebra and Trigonometry (MindTap Course List)

4th Edition

ISBN:9781305071742

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter4: Exponential And Logarithmic Functions

Section4.CT: Chapter Test

Problem 11CT

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