a.
To calculate: The balance A of an investment when
a.
Answer to Problem 58E
When compounded by day, amount is 5466.09
Explanation of Solution
Given:
When compounded per day
Then n will be 365 because there are 365 days in a year. Using
Here
a.
To calculate: The balance A of an investment when
a.
Answer to Problem 58E
When compounded by hour, amount is 5466.35
Explanation of Solution
Given:
When compounded by hour
1 year = 365 days and 1 day = 24 hours
Hence, 1 year =
Here
c.
To calculate: The balance A of an investment when
c.
Answer to Problem 58E
When compounded by minute, amount is 5466.36
Explanation of Solution
Given:
When compounded by minutes
1 year = 365 days and 1 day = 24 hours and 1 hour = 60 minutes
Hence, 1 year
Here
d.
To calculate: The balance A of an investment when
Does increasing the number of compounds per year result in unlimited growth of the balance? Explain.
d.
Answer to Problem 58E
When compounded by second, amount is 5466.38
Increasing the number of compounding does not result in unlimited growth of the balance of the account. The balance will approach the value obtained when continuous compounding is used.
Explanation of Solution
Given:
When compounded by seconds
1 year = 365 days and 1 day = 24 hours and 1 hour = 60 minutes and 1 minute = 60 seconds
Hence, 1 year =
Here
Increasing the number of compounding does not result in unlimited growth of the balance of the account. The balance will approach the value obtained when continuous compounding is used.
Chapter 2 Solutions
EBK PRECALCULUS W/LIMITS
- Calculus: Early TranscendentalsCalculusISBN:9781285741550Author:James StewartPublisher:Cengage LearningThomas' Calculus (14th Edition)CalculusISBN:9780134438986Author:Joel R. Hass, Christopher E. Heil, Maurice D. WeirPublisher:PEARSONCalculus: Early Transcendentals (3rd Edition)CalculusISBN:9780134763644Author:William L. Briggs, Lyle Cochran, Bernard Gillett, Eric SchulzPublisher:PEARSON
- Calculus: Early TranscendentalsCalculusISBN:9781319050740Author:Jon Rogawski, Colin Adams, Robert FranzosaPublisher:W. H. FreemanCalculus: Early Transcendental FunctionsCalculusISBN:9781337552516Author:Ron Larson, Bruce H. EdwardsPublisher:Cengage Learning