The amount of $20, 000 is deposited in a bank that pays interest at the rate of 6% per year compounded semiannually. Using the compound interest formula A(t) = P(1 + r/m)^mt , answer the following questions. Round the answer to the number of decimals indicated in the brackets after each question. [1] (a) What is the accumulated amount in 5 years? (two decimals) [1] (b) What is the interest earned in 5 years? (two decimals) [4] (c) How long will it take to double the investment? (one decimal)
The amount of $20, 000 is deposited in a bank that pays interest at the rate of 6% per year compounded semiannually. Using the compound interest formula A(t) = P(1 + r/m)^mt , answer the following questions. Round the answer to the number of decimals indicated in the brackets after each question. [1] (a) What is the accumulated amount in 5 years? (two decimals) [1] (b) What is the interest earned in 5 years? (two decimals) [4] (c) How long will it take to double the investment? (one decimal)
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
Section4.2: The Natural Exponential Function
Problem 2E
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The amount of $20, 000 is deposited in a bank that pays interest at the rate
of 6% per year compounded semiannually. Using the compound interest formula
A(t) = P(1 + r/m)^mt
,
answer the following questions.
Round the answer to the number of decimals indicated in the brackets after each question.
[1] (a) What is the accumulated amount in 5 years? (two decimals)
[1] (b) What is the interest earned in 5 years? (two decimals)
[4] (c) How long will it take to double the investment? (one decimal)
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