Question 72776: I am in dire need or assitance with the following questions and if anyone could assist me i WOULD BE SO GREATFUL!!!
(1)you are traveling North for 35km the you travel East 65km. how far are you from your starting point? N and E ca be considered the direstions of the y and x axis. Round to the tenths place.
(2)the volume of a cube is given by V=S^3. find the length of a side of a cube if the volume is 729cm^3.
(3)suppose you deposit $10,000 for two years at a rate of 10%.calculate the return (A) if the bank compounds annually(n=1). round answer to the hundreths place.
Show work:(use ^ to indicate the power).
(A)calculate the return(A) if the bank compounds quarterly(n=4). round answer to the hundreths place.
Bank compounds monthly(n=12). Round answer to hundreths place.
Bank compound daily(n=365).round answer to hundreths.
what observation can you make about the size of the increase in your return as compounding increases more frequently?
Answer: Answer by jim_thompson5910(33401) (Show Source):
For annual compounding let n=1 and t=2 (two years)
use the equation
Where A is return
So the annual return is $12,100
For interest compounded quarterly let n=4 and t=2 (two years)
For interest compounded monthly let n=12 and t=2 (two years)
For interest compounded daily let n=365 and t=2 (two years)
So as the frequency of compounding increases it approaches a finite number. Notice how the increase gets smaller as we increase the frequency of compounding. So as the compounding frequency increases, it approaches a finite number. It actually approaches the continuous value of the continuous compound formula. Continuous compounding has the form
Where e is a constant e=2.71828...
So if it was contiuously compounded for 2 years at 10% then
So over 2 years it continuously compounds to $12,214.03
Hope this helps. Feel free to ask about any step.