continuously is givin by A=Pe^rt where r is expressed as a decimal. What is the amount in the account if $500 is invested for 10 years at an annual rate of 5% compounded continuosly?
2007-02-08 19:47:26 · 4 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
1.05, raised to the power of ten, times 500.,, (1.05^10) x 500
the trick is to add the 1 to the interest rate before raising to the number of years. $814.45
below is correct for continous compounding as mine is for yearly compounding.
2007-02-08 19:51:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Slightly more than if it were compounded annually. A scientific calculator will give you an exact answer; it is approximately $800.
2007-02-09 03:59:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A=Pe^rt
A = $500e^(0.05)(10)
A= $824.36
2007-02-09 03:53:43 · answer #3 · answered by seah 7 · 0⤊ 0⤋
=525
500
.05
=2.5*10
25
500
525
2007-02-09 09:09:51 · answer #4 · answered by elizabeth q 1 · 0⤊ 0⤋