+0  
 
0
414
1
avatar

You deposit $6,000 into an account that pays 5%. Find the account balance after 2 years if the interest is compounded: a) monthly b) continuously

Guest Jun 16, 2014

Best Answer 

 #1
avatar+90088 
+5

Compounded monthly =

6000(1 + .05/12)^(2*12)  ≈ $6629.65

 

Continuous compounding =  Pert 

 6000e^(.05*2) ≈ $6631.03

Note that continuous compounding doesn't differ much from monthly compunding.....!!!!!

 

CPhill  Jun 16, 2014
 #1
avatar+90088 
+5
Best Answer

Compounded monthly =

6000(1 + .05/12)^(2*12)  ≈ $6629.65

 

Continuous compounding =  Pert 

 6000e^(.05*2) ≈ $6631.03

Note that continuous compounding doesn't differ much from monthly compunding.....!!!!!

 

CPhill  Jun 16, 2014

12 Online Users

New Privacy Policy

We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive information about your use of our website.
For more information: our cookie policy and privacy policy.