The interest on a particular savings account is compounded continuously. The account initially had $2,200 deposited in it. The worth of the account after t-years can be calculated using the formula: A(t)=2200e0$1 (a) By what percent will the worth of the account increase per year? Round to the nearest hundredth of a percent. (b) To the nearest tenth of a year, how long will it take for the worth of the account to triple? (c) If another investment began with a principal of $2,500 and earned simplest interest of 3.8% applied once per year, which investment would be worth more after 10 years? Justify
The interest on a particular savings account is compounded continuously. The account initially had $2,200 deposited in it. The worth of the account after t-years can be calculated using the formula: A(t)=2200e0$1 (a) By what percent will the worth of the account increase per year? Round to the nearest hundredth of a percent. (b) To the nearest tenth of a year, how long will it take for the worth of the account to triple? (c) If another investment began with a principal of $2,500 and earned simplest interest of 3.8% applied once per year, which investment would be worth more after 10 years? Justify
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter4: Managing Your Cash And Savings
Section: Chapter Questions
Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...
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The interest on a particular savings account is compounded continuously. The account initially had $2,200 deposited in it. The worth of the account after t-years can be calculated using the formula: A(t)=2200e0$1 (a) By what percent will the worth of the account increase per year? Round to the nearest hundredth of a percent. (b) To the nearest tenth of a year, how long will it take for the worth of the account to triple? (c) If another investment began with a principal of $2,500 and earned simplest interest of 3.8% applied once per year, which investment would be worth more after 10 years? Justify
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