Question 1125329: 1.) If your IRA compounds continuously for the next 20 years, how much interest will you earn if it pays 3.45% interest, the current balance is $82,000, and you make no contributions or withdrawals
2.) On January 1, there was $25,000 in an account paying 4.35% daily. On Feb. 17th $2,000 was added to the account. On March 5th $5,000 was withdrawn. What is the balance on April 1st? (Leap year is not a factor
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! rule of 69/70 is doubling time in years is 69 or 70 (or even 72)/3.45, the per cent rate. That is 20 years, strongly suggesting the money will double
P=Poe^(rt)=82000*e^(0.0345*20), where e^(0.69)=1.994, almost 2
so P=$163,484.67
P=25000(1+0.0435/365)^47=$25140.42
+$2000=$27140.42 on 17 Feb
27140.42(1+(.0435/365)^16=$27292.86
-$5000=$22292.86 on 5 March
22292.86(1+0.0435/365)^27=$22,364.71
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