Question 178323: Please help! This is my last assignment and I'm having trouble! Below the paragraph is what I attempted.
Take the current amount you have in your checking or savings account. Suppose you have a choice of keeping your money for five years in a savings account with a 2% interest rate, or in a five year certificate of deposit with and interest rate of 4.5%. Calculate how much interest you would earn with each option over five years time with continuous compounding.
The amount of money in my saving is account is 5,326.00.
A=5,326(1+2%)5
A=?
A=5,326(1+4.5%)5
A=?
Answer by cartert(27)   (Show Source):
You can put this solution on YOUR website! First you need to do Distributive property.
an easy way to do this is PEMDAS.
Turn the 2% in to .02
A=5,326(1+.02)5
5,326(1.02)5
so multiply 5,326(1.02)
then multiply the answer of the ? above by 5 and u will have A=
Turn 4.5 into .045
A=5,326(1+.045)5
5,326(1.045)5
so multiply 5.326(1.045)
then multiply the answer of the ? above by 5 and u will have A=
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