The value of a bank account collecting interest which is continuously compounded ismodeled by the equation: A = Pet where:A is the value of the account at time tP, or the principal, is the value of the initial investmentt is time (measured in years)r is the interest rate (written as a decimal)1. Suppose that $5000 is put into an account with an interest rate of 8% compoundedcontinuously.a) How much will the account be worth after 3 years (exact value) ?b) How much will the account be worth after 3 years (rounded to the nearest cent) ?c) How many years will it take for the value of the account to double?In an exponential model for population growth, the size of a population at time t isrtdescribed by the equation: N(t) = Net where:N is the initial population or the population at t=0r is the percentage growth ratet = time and can be measured in different units depending on the problem.Note: You don't have to use e and r. It is often possible to find an equivalent formN(t) = Nat/k2. There are 800 bacteria in a colony at t = 0. There are 1000 bacteriain the colonytwo days later.a) find rb) find how many you will have after four days (t=4).c) Can you set up the problem so that it can be done without a calculator?d) How long will it take for the population of bacteria to reach 3000? (This part willprobably require a calculator)In a logistic growth model, the graph will start off looking very similar to an exponentialgrowth graph, except in the long run, the graph will flatten out and approach a maximuminstead of growing in an unbounded fashion.

The value of a bank account collecting interest which is continuously compounded is modeled by the equation: A = Pet where: A is the value of the account at time t P, or the principal, is the value of the initial investment t is time (measured in years) r is the interest rate (written as a decimal) 1. Suppose that $5000 is put into an account with an interest rate of 8% compounded continuously. a) How much will the account be worth after 3 years (exact value) ? b) How much will the account be worth after 3 years (rounded to the nearest cent) ? c) How many years will it take for the value of the account to double?

The value of a bank account collecting interest which is continuously compounded is modeled by the equation: A = Pet where: A is the value of the account at time t P, or the principal, is the value of the initial investment t is time (measured in years) r is the interest rate (written as a decimal) 1. Suppose that $5000 is put into an account with an interest rate of 8% compounded continuously. a) How much will the account be worth after 3 years (exact value) ? b) How much will the account be worth after 3 years (rounded to the nearest cent) ? c) How many years will it take for the value of the account to double?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 10EB: You have been depositing money into an account yearly based on the following investment amounts,...

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