SOLUTION: Joe deposits $1,300 in an account that pays 2% annual interest compounded continuously.
a. How much will Joe have in his account after 5 years?
b. How long will it take Joe to
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-> SOLUTION: Joe deposits $1,300 in an account that pays 2% annual interest compounded continuously.
a. How much will Joe have in his account after 5 years?
b. How long will it take Joe to
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Question 1065825: Joe deposits $1,300 in an account that pays 2% annual interest compounded continuously.
a. How much will Joe have in his account after 5 years?
b. How long will it take Joe to double his money? Use natural logarithms and explain your answer.
c. In one or two sentences explain how the answers in part a and b will chance if the interest is compounded annually? You do not need to show . . . calculations to answer this part. Answer by addingup(3677) (Show Source):
You can put this solution on YOUR website! a):
P*e^(rt)
1300*e^(rt)
1300*e^(0.02*5) = 1436.72
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b):
(ln(2))/0.02 = 34.66
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c)
you answer it. The formula for a) compounded annually is: Amount = 1300(1+0.02)^5
