An initial deposit of $45,000 grows at an annual rate of 10% for 20 years. Compare the final balances resulting from continuous
1 answer:
Answer:
Annual: $302 737.50
Continuous: $332 507.52
Step-by-step explanation:
A. Compounded annually
The formula for <em>compound interest</em> is
A = P(1 + r)ⁿ
Data:
P = $45 000
r = 10 %
t = 20 yr
Calculations:
n = 20
A = 45 000(1+ 0.10)²⁰
= 45 000 × 1.10²⁰
= 45 000 × 6.727 499 95
= $302 737.50
B. Compounded continuously
The formula for <em>continuously compounded inerest</em> is
= 45 000 × 7.389 056 61
= $332 507.52
You might be interested in
Answer:
Step-by-step explanation:
A ratio is a comparison of two quantities and can be written in several forms including fractions. It is most commonly written in fraction form or a:b.
To write a ratio, we count the number of each quantity we are comparing or use the variable for that quantity. We write radius:circumference. Recall, the circumference of a circle can be found using or
.
We write r: or r:
.
We can also write in fraction form:
or