Question 363930
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For the 8.9% compounded semi-annually:


*[tex \Large r\ =\ 0.089], *[tex \Large n\ =\ 2], *[tex \Large t\ =\ 9], and *[tex \Large P\ = 7000], and the formula to use is:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ A\ =\ P(1\ +\ \frac{r}{n})^{nt}]


For the 8.75% compounded continuously,


*[tex \Large r\ =\ 0.0875], *[tex \Large t\ =\ 9], *[tex \Large P\ = 7000], *[tex \Large e] is the base of the natural logarithms and the formula to use is:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ A\ =\ Pe^{rt}]


All you have to do is put the numbers in their places and do the arithmetic.


John
*[tex \LARGE e^{i\pi} + 1 = 0]
My calculator said it, I believe it, that settles it
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