Question 1082120: Question 1. What is the total amount an investment account after 3 1/2 years on a principal of $15000 at a rate of 6.5% compounded quarterly.
Question 2: If Morris deposited $10000 in an account paying 6.5% compounded continuously and there is now $16820.28 in the account, how long was the money in the account.
Any assistance will be grateful.
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! P=Po(1+r/n)^14, the 14 being the number of quarters in 3 1/2 years.
P=15000(1+(.065/4))^14; don't round until the end.
$18,797.46
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P=Poe^(rt)
16820.28=10000*e^(.065t)
1.682028=e^(0.065t)
ln both sides, which removes e, then divide by 0.065
8 years
check by doing this quarterly, which should be close but less
10000(1+.065/4)^32
=$16,750.11, which is appropriate.
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