Question 64821: Can anyone help with this word problem? please
If you invest $5,000 paying 9%, to the nearest penny how much will you have in 25 years if it is compounded:
25. semi-annually
26. continuously
Thank You
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! If you invest $5,000 paying 9%, to the nearest penny how much will you have in 25 years if it is compounded:
25. semi-annually
A=P(1+r/n)^(nt)
A=5000(1+0.09/2)^(2*25)
A=5000(1.045)^(50)
A=5000(9.0326...
A=$45,163.18
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26. continuously
A=Pe^(rt)
A=5000e^(0.09*25)
A=5000e^2.25
A=$47,438.68
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Cheers,
Stan H.
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