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Rugtugba
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If you deposit $1,000 in an account that pays 6% annual interest compounded continuously, what will the balance be after five years?
 one year ago
 one year ago
Rugtugba Group Title
If you deposit $1,000 in an account that pays 6% annual interest compounded continuously, what will the balance be after five years?
 one year ago
 one year ago

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Kuoministers Group TitleBest ResponseYou've already chosen the best response.1
any idea how to formulate a equation for that?
 one year ago

Rugtugba Group TitleBest ResponseYou've already chosen the best response.0
no :/ cantremember
 one year ago

Mertsj Group TitleBest ResponseYou've already chosen the best response.2
I believe the formula is \[A = Pe ^{rt}\]
 one year ago

Kuoministers Group TitleBest ResponseYou've already chosen the best response.1
Conpound interest can be calculated using the formula
 one year ago

Kuoministers Group TitleBest ResponseYou've already chosen the best response.1
P = principal amount (the initial amount you borrow or deposit) r = annual rate of interest (as a decimal) t = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest. n = number of times the interest is compounded per year
 one year ago

Kuoministers Group TitleBest ResponseYou've already chosen the best response.1
remember your interest compounds annually(every year)
 one year ago

Mertsj Group TitleBest ResponseYou've already chosen the best response.2
@Kuoministers That is indeed the formula for compound interest where you have a finite number of compounding periods. However, in this problem, the interest is compounded continuously. So the formula I posted is the one to use and I am afraid you are confusing the asker. Why don't you google "interest formula compounded continuously"?
 one year ago

MariaB2014 Group TitleBest ResponseYou've already chosen the best response.0
@Mertsj is right .
 one year ago

Kuoministers Group TitleBest ResponseYou've already chosen the best response.1
ah yes my bad @mertsj :)
 one year ago

Kuoministers Group TitleBest ResponseYou've already chosen the best response.1
but it still would work if you used the formula that i had?
 one year ago

Mertsj Group TitleBest ResponseYou've already chosen the best response.2
So Rugtugba, now that we have cleared the chatter, are you ready to continue?
 one year ago

Mertsj Group TitleBest ResponseYou've already chosen the best response.2
@Kuoministers What would you use for n?
 one year ago

Kuoministers Group TitleBest ResponseYou've already chosen the best response.1
1 since its compounded yearly
 one year ago

Mertsj Group TitleBest ResponseYou've already chosen the best response.2
Plug into the formula. The initial amount A is Ok. Let me deal with the cat first.
 one year ago

Mertsj Group TitleBest ResponseYou've already chosen the best response.2
@Kuoministers So compounded continuously means annually? I thought compounded annually meant compounded annually. Silly me!!
 one year ago

Mertsj Group TitleBest ResponseYou've already chosen the best response.2
Good luck, Rugtugba. We have way too many cooks in this kitchen.
 one year ago

tkhunny Group TitleBest ResponseYou've already chosen the best response.1
@Kuoministers the continuous forumla is the limiting form of the finite form you have posted. Your calculus will have to be up to speed to prove it. You can explore it on your own by calculating the finite formula multiple times, each with an increasing value of n.
 one year ago

Rugtugba Group TitleBest ResponseYou've already chosen the best response.0
its alright guys i found it its 1349.60 thanks anyways
 one year ago
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