College Algebra 7th Edition

Published by Brooks Cole
ISBN 10: 1305115546
ISBN 13: 978-1-30511-554-5

Chapter 4, Exponential and Logarithmic Functions - Section 4.2 - The Natural Exponential Function - 4.2 Exercises - Page 379: 35

Answer

a. $768.05$ b. $769.2$ c. $769.8$ d. $770.4$

Work Step by Step

We use the formula for compounded interest $A(t)=P(1+\frac{r}{n})^{nt}$ with $P=\$600$ $r=0.025$ $t=10$ a. $n=1$ $A(10)=600(1+\frac{0.025}{1})^{10} \approx 768.05$ b. $n=2$ $A(10)=600(1+\frac{0.025}{2})^{10(2)} \approx 769.2$ c. $n=4$ $A(10)=600(1+\frac{0.025}{4})^{10(4)} \approx 769.8$ d. Continuously $A(10)=600e^{(0.025)10} \approx 770.4$
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