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Calculus: An Applied Approach (Min...

10th Edition
Ron Larson
ISBN: 9781305860919

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BuyFindarrow_forward

Calculus: An Applied Approach (Min...

10th Edition
Ron Larson
ISBN: 9781305860919
Textbook Problem
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Investment A principal of $5000 is deposited in a savings account that earns an interest rate of r (in decimal form), compounded continuously. The amount A ( r ,   t ) after t years is A ( r ,   t )   = 5000 e r t .

Use this function of two variables and a spreadsheet to complete the table.

Number of Years

Rate 5 10 15 20 25
0.02
0.03
0.04
0.05
0.06

To determine

To calculate: The amount after the different years and rate of interest given in the table if the amount is given by the function A(r,t)=5000ert, where r is rate of interest compound continuously and t is time in years.

Explanation

Given Information:

Function is A(r,t)=5000ert and principle amount is 5000 dollar.

The provided table is,

Numbers of years
Rate 5 10 15 20 25
0.02
0.03
0.04
0.05
0.06

Calculation:

Consider the function,

A(r,t)=5000ert

Use excel spreadsheet as below to find the amounts as below,

Step 1: Open the Excel spreadsheet and write the given rates in the cell A2 to A6 and write the different years in the cell B1, C1, D1, E1 and F1 as shown below,

Step 2: Go to cell B2 and write the formula as,

=5000*EXP(A2*B$1)

Press enter and drag the column up to the cell B6

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