SOLUTION: Interest compounded continuously. Suppose that P 0 is invested in a savings account where interest is compounded continuously at 3.1% per year. * a) Express P(t) in terms of P0 and
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Question 340391: Interest compounded continuously. Suppose that P 0 is invested in a savings account where interest is compounded continuously at 3.1% per year. * a) Express P(t) in terms of P0 and 0.031. * b) Suppose that $1000 is invested. What is the balance after 1 yr? after 2 y...
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
In general:
\ =\ P_oe^{rt})
So for 3.1% per year:
\ =\ P_oe^{0.031t})
For 1000 for 1 year:
\ =\ 1000e^{0.031(1)})
For 1000 for 2 years:
\ =\ 1000e^{0.031(2)})
I'll leave you alone to spend some quality time with your calculator.
John
My calculator said it, I believe it, that settles it
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