Concept explainers
Tocomplete:
The given table for a savings account which is compounded continuously.
Answer to Problem 20E
The completed table is:
Explanation of Solution
Given:
Rate of interest in a continuously compounded account is 3.5% and the amount after 10 years is $2500.
Formula used:
Amount in a continuously compounded account is given by:
Calculation:
Upon substituting the given values in the formula for continuous compound interest, we get:
We can rewrite the formula as:
In order to find the doubling time, we will replace A by 3523.44 and solve for t as shown below:
Therefore, the complete table is:
Chapter 3 Solutions
PRECALCULUS W/LIMITS:GRAPH.APPROACH(HS)
- 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