document.write( "Question 1179708: How much more would be in an account that has interest compounded continuously rather than annually if the initial deposit is $500 and the yearly interest rate is 7% for 10 years? \n" ); document.write( "

Algebra.Com's Answer #809292 by ikleyn(52879) $\"\"$ $\"About$

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document.write( "For the continuously compounded account, the annual growth factor is\r\n" );
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document.write( "     =  = 1.072508  (approximately).\r\n" );
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document.write( "For the annually compounded account, the annual growth factor is\r\n" );
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document.write( "    1 + 0.07 = 1.07.\r\n" );
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document.write( "The difference between amounts the problem asks for, is\r\n" );
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document.write( "     -  = 23.30 dollars.    ANSWER\r\n" );
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\n" ); document.write( "\n" ); document.write( "I could solve this problem in one line, using the standard formulas.\r
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\n" ); document.write( "\n" ); document.write( "But I decided to present it in more detailed form to make it more educational for you.\r
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\n" ); document.write( "\n" ); document.write( "For discetely and continuously compounded account, look into these two lessons\r
\n" ); document.write( "\n" ); document.write( "    - Compounded interest percentage problems \r
\n" ); document.write( "\n" ); document.write( "    - Problems on discretely compound accounts \r
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\n" ); document.write( "\n" ); document.write( "After reading these lessons, you will tackle such problems on your own without asking for help from outside.\r
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\n" ); document.write( "\n" ); document.write( "Also, you have this free of charge online textbook in ALGEBRA-I in this site\r
\n" ); document.write( "\n" ); document.write( "    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.\r
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\n" ); document.write( "\n" ); document.write( "The referred lessons are the part of this online textbook under the topic \"Logarithms\".\r
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\n" ); document.write( "\n" ); document.write( "Save the link to this online textbook together with its description\r
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\n" ); document.write( "\n" ); document.write( "Free of charge online textbook in ALGEBRA-I
\n" ); document.write( "https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson\r
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\n" ); document.write( "\n" ); document.write( "to your archive and use it when it is needed.\r
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\n" ); document.write( "\n" ); document.write( "Happy learning (!)\r
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