College Algebra (6th Edition)

Published by Pearson
ISBN 10: 0-32178-228-3
ISBN 13: 978-0-32178-228-1

Chapter 4 - Exponential and Logarithmic Functions - Exercise Set 4.1 - Page 452: 54

Answer

a. $\$ 9479.19$ b. $\$ 9527.79$ c. $\$ 9560.92$ d. $\$ 9577.70$

Work Step by Step

After $t$ years, the balance, $A$, in an account with principal $P$ and annual interest rate $r$ (in decimal form) is given by one of the following formulas: 1. For $n$ compoundings per year: $A=P(1+\displaystyle \frac{r}{n})^{nt}$ 2. For continuous compounding: $A=Pe^{rt}$. ------------------------ $\mathrm{a}$. $ A=5000(1+\displaystyle \frac{0.065}{2})^{2\cdot 10}\approx \$ 9479.19$ $\mathrm{b}$. $A=5000(1+\displaystyle \frac{0.065}{4})^{4\cdot 10}\approx\$ 9527.79$ $\mathrm{c}$. $A=5000(1+\displaystyle \frac{0.065}{12})^{12\cdot 10}\approx\$ 9560.92$ $\mathrm{d}$. $A=5000(e)^{0.065\cdot 10}\approx\$ 9577.70$
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