Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 2 - Nonlinear Functions - 2.4 Exponential Functions - 2.4 Exercises - Page 86: 37

Answer

a. 2166.529; b. 2189.9; c. 2201.9; d. 2210; e. 2214;

Work Step by Step

a. Annually $A=P(1 + \frac{r}{m})^{tm}$ = $10.000(1 + \frac{0,04}{1})^{1(5)}\approx 12166.529$ The interest amounts to $12166.529 - 10.000 = 2166.529$ b. Semiannually $A=P(1 + \frac{r}{m})^{tm}$ = $10.000(1 + \frac{0,04}{2})^{2(5)}\approx 12189.9$ The interest amounts to $12189.9 - 10.000 = 2189.9$ c. Quarterly $A=P(1 + \frac{r}{m})^{tm}$ = $10.000(1 + \frac{0,04}{4})^{4(5)}\approx 12201.9$ The interest amounts to $12201.9 - 10.000 = 2201.9$ d. Monthly $A=P(1 + \frac{r}{m})^{tm}$ = $10.000(1 + \frac{0,04}{12})^{12(5)}\approx 12210$ The interest amounts to $12210 - 10.000 = 2210$ e. Continuously $A=Pe^{rt} = 10.000e^{5(0,04)} \approx 12214$ The interest amounts to $12214 - 10.000 = 2214$
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