A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 3 years ago
If you deposit $1,000 in an account that pays 6% annual interest compounded continuously, what will the balance be after five years?
anonymous
 3 years ago
If you deposit $1,000 in an account that pays 6% annual interest compounded continuously, what will the balance be after five years?

This Question is Closed

Kuoministers
 3 years ago
Best ResponseYou've already chosen the best response.1any idea how to formulate a equation for that?

Mertsj
 3 years ago
Best ResponseYou've already chosen the best response.2I believe the formula is \[A = Pe ^{rt}\]

Kuoministers
 3 years ago
Best ResponseYou've already chosen the best response.1Conpound interest can be calculated using the formula

Kuoministers
 3 years ago
Best ResponseYou've already chosen the best response.1P = 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

Kuoministers
 3 years ago
Best ResponseYou've already chosen the best response.1remember your interest compounds annually(every year)

Mertsj
 3 years ago
Best 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"?

Kuoministers
 3 years ago
Best ResponseYou've already chosen the best response.1ah yes my bad @mertsj :)

Kuoministers
 3 years ago
Best ResponseYou've already chosen the best response.1but it still would work if you used the formula that i had?

Mertsj
 3 years ago
Best ResponseYou've already chosen the best response.2So Rugtugba, now that we have cleared the chatter, are you ready to continue?

Mertsj
 3 years ago
Best ResponseYou've already chosen the best response.2@Kuoministers What would you use for n?

Kuoministers
 3 years ago
Best ResponseYou've already chosen the best response.11 since its compounded yearly

Mertsj
 3 years ago
Best ResponseYou've already chosen the best response.2Plug into the formula. The initial amount A is Ok. Let me deal with the cat first.

Mertsj
 3 years ago
Best ResponseYou've already chosen the best response.2@Kuoministers So compounded continuously means annually? I thought compounded annually meant compounded annually. Silly me!!

Mertsj
 3 years ago
Best ResponseYou've already chosen the best response.2Good luck, Rugtugba. We have way too many cooks in this kitchen.

tkhunny
 3 years ago
Best 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.

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0its alright guys i found it its 1349.60 thanks anyways
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.