Question 383499: Solid Premiere Bank offers a 5-year CD that earns 4.72% compounded continuously.
(a) If $1,000 is invested in this CD, how much will it be worth in 5 years?
(b) How long will it take the account to be worth $5,000?
Answer by mananth(16946)   (Show Source):
You can put this solution on YOUR website! Solid Premiere Bank offers a 5-year CD that earns 4.72% compounded continuously.
(a) If $1,000 is invested in this CD, how much will it be worth in 5 years?
(b) How long will it take the account to be worth $5,000?
...
A = P(1+r/n)^nt
A=1000*(1+0.0472/365)^(365*5)
A= 1266.15
...
n = log(A/P)/(q log[1+(i/q)]).
n=log(5000/1000)/(365*log(1+(0.0472/365)))
n= 34.1 years
...
m.ananth@hotmail.ca
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