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. 3 (a) Find the amount of money accrued at the end of 8 years when $4000 is deposited in a savings account drawing 5% annual 4 interest compounded continuously. (Round your answer to the nearest cent.) $ (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S = 4000 1 + when interest is compounded quarterly. (Round your answer to the nearest cent.) S = $ 8(4) 0(1+1(0.0575)) that is accrued

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. 3 (a) Find the amount of money accrued at the end of 8 years when $4000 is deposited in a savings account drawing 5% annual 4 interest compounded continuously. (Round your answer to the nearest cent.) $ (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S = 4000 1 + when interest is compounded quarterly. (Round your answer to the nearest cent.) S = $ 8(4) 0(1+1(0.0575)) that is accrued

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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