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Question 64010: Can you help with this word problem. Thanks
1.)
Suppose that $4,000 is invested at 7% compounded weekly. How much money will be in the account in 10 years? (show equation used to find your answer)
2.)
In 2002, the estimated population of Ethiopia was 68 million with an annual growth of 2.8% compounded continuously. Based on this information, what will the population of Ethiopia be in 2020? (show equation used to find your answer)
Found 2 solutions by Edwin McCravy, josmiceli:
Answer by Edwin McCravy(20056)   (Show Source):
You can put this solution on YOUR website! Can you help with this word problem. Thanks
1.)
Suppose that $4,000 is invested at 7% compounded weekly. How much money will be
in the account in 10 years? (show equation used to find your answer)
The formula is
A = P(1 + r/n)nt
where P = 4000, r = .07, n = 52, t = 10
A = 4000(1 + .07/52)(52)(10)
A = 4000(1 + .0013461538)520
A = 4000(1.0013461538)520
A = 8051.219976, or $8051.22
Notice that if you used the formula for continuous
compounding, as you have to do in the next problem,
you get:
A = Pert
A = 4000e(.07)(10)
A = 8055.01083 or $8055.01
which is very close to what you get compounding
weekly.
2.)
In 2002, the estimated population of Ethiopia was 68 million with an annual
growth of 2.8% compounded continuously. Based on this information, what will
the population of Ethiopia be in 2020? (show equation used to find your answer)
A = Pert
where P = 68, r = .028, t = 18 (18 years
from 2002 till 2020)
A = 68e(.028)(18)
A = 68e.504
A = 112.5623967 or about 112.6 million
Edwin
Answer by josmiceli(19441)  (Show Source):
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