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https://prnt.sc/phizpz 

 

 

interest rate = 1.2% /  12 = 0.1 * 1000 = 100$ 

 Oct 10, 2019
 #1
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0

Albert's money:

1st line   Period is ONE month    total periods = 10 years x12 month/yr  = 120 periods

              Interst per period is .012/12 = .001

              Principle = 1000

              At the end of 10 years    value = 1000 (1.001)120

 

2nd line   500 - 500(.02)

3rd line    Continuous compounding at .008     is  500 e10(.008)  = $ 541.64

 

Add the red quantities to get Albert's final amount at the end of the ten years.....

 Oct 10, 2019
 #2
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+1

thank you !

 Oct 10, 2019

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