For Exercises 11–16, suppose that P dollars in principal is invested at an annual interest rate r . For interest compounded n times per year, the amount A ( t ) in the account after t years is given by A ( t ) = P ( 1 + r n ) n t . If interest is compounded continuously, the amount is given by A ( t ) = P e r t . Suppose an investor deposits $15,000 in an account for 8 yr at 5.0% interest. Find the total amount of money in the account for the following compounding options. Compare your answers. How does the number of compound periods per year affect the total investment? a. Compounded annually b. Compounded quarterly c. Compounded monthly d. Compounded daily e. Compounded continuously
For Exercises 11–16, suppose that P dollars in principal is invested at an annual interest rate r . For interest compounded n times per year, the amount A ( t ) in the account after t years is given by A ( t ) = P ( 1 + r n ) n t . If interest is compounded continuously, the amount is given by A ( t ) = P e r t . Suppose an investor deposits $15,000 in an account for 8 yr at 5.0% interest. Find the total amount of money in the account for the following compounding options. Compare your answers. How does the number of compound periods per year affect the total investment? a. Compounded annually b. Compounded quarterly c. Compounded monthly d. Compounded daily e. Compounded continuously
Solution Summary: The author calculates the total amount of money in the account after 8 years if compounded annually for 15000 invested at 5%.
For Exercises 11–16, suppose that P dollars in principal is invested at an annual interest rate r. For interest compounded n times per year, the amount
A
(
t
)
in the account after t years is given by
A
(
t
)
=
P
(
1
+
r
n
)
n
t
. If interest is compounded continuously, the amount is given by
A
(
t
)
=
P
e
r
t
.
Suppose an investor deposits $15,000 in an account for 8 yr at 5.0% interest. Find the total amount of money in the account for the following compounding options. Compare your answers. How does the number of compound periods per year affect the total investment?
Suppose that $71,000 is invested at 3 & a 1/2% interest, compounded quarterly.
a) Find the function for the amount to which the investment grows after t years.
b) Find the amount of money in the account at t=0, 4, 6, and 10 years.
When a particular amount of money P, called the principal, is invested at the interest rate r and is compounded
n times a year, the amount A accumulated after t
years
is
A(t) – P(1+ )".
= P(1-+
n
Determine the amount of money accumulated after 15 years if $5,000 is invested in an account that pays 10 %
interest compounded yearly. Round to the nearest cent.
An investment grows according to the formula,where t is time, measured in months.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, algebra and related others by exploring similar questions and additional content below.
How to determine the difference between an algebraic and transcendental expression; Author: Study Force;https://www.youtube.com/watch?v=xRht10w7ZOE;License: Standard YouTube License, CC-BY