SOLUTION: you deposit $2500 in an account that pays 6% annual interest. first write an exponential growth model for the balance of the account. after 4 years, find the balance for the follow

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Question 855234: you deposit $2500 in an account that pays 6% annual interest. first write an exponential growth model for the balance of the account. after 4 years, find the balance for the following situations:
Exponential growth model
compounded yearly
compounded monthly
compounded daily
compounded continuously
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29

compounded:

annually A%28t%29+=+2500%281.06%29%5E%284%29

monthly  A%28t%29+=+2500%281%2B+.06%2F12%29%5E%2812%2A4%29

daily    A%28t%29+=+2500%281%2B+.06%2F365%29%5E%28365%2A4%29

continuously   A%28t%29+=+P+e+%5E%28rt%29+=+2500e%5E%28.06t%29