+74 Find the balance in an account at the end of 6 years if $5000 is invested at an intrest rate of 8.5% that is compounded:
A: Yearly
B: Monthly
C: Continuously
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+129852 LOL!!!!
The "formulas" for the first two are similar.......just the times compounded per year are different
A = P (1 + r / n)^(n *t) where P is the principal, r is the interest rate, n is the number of compoundings per year and t is the number of years
A) Yearly
5000(1 + .085/ 1)^(1 * 6 ) ≈ $8157.34
B) Monthly
5000(1 +.085/12)^(12* 6) ≈ $ 8311.50
C) Continuously ...... use A = Pe^(rt)
5000e^(.085 * 6) ≈ $8326.46
+129852 LOL!!!!
The "formulas" for the first two are similar.......just the times compounded per year are different
A = P (1 + r / n)^(n *t) where P is the principal, r is the interest rate, n is the number of compoundings per year and t is the number of years
A) Yearly
5000(1 + .085/ 1)^(1 * 6 ) ≈ $8157.34
B) Monthly
5000(1 +.085/12)^(12* 6) ≈ $ 8311.50
C) Continuously ...... use A = Pe^(rt)
5000e^(.085 * 6) ≈ $8326.46
