When interest is continually compounded, at any time the amount of money increases proportionally to the amount present a). Calculate the amount collected at the end of five years, when $ 5000 is deposited into a savings account that yields 5 ¾% annual interest compounded continuously. b) In how many years will the initial capital have doubled? Rta. 6665.45; approx 12.05 years. Please explain answer step by step.

When interest is continually compounded, at any time the amount of money increases proportionally to the amount present a). Calculate the amount collected at the end of five years, when $ 5000 is deposited into a savings account that yields 5 ¾% annual interest compounded continuously. b) In how many years will the initial capital have doubled? Rta. 6665.45; approx 12.05 years. Please explain answer step by step.

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.1: Exponential Functions

Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...

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