I need help with the following questions. Show all work for each. Please type an
ID: 3137191 • Letter: I
Question
I need help with the following questions. Show all work for each. Please type answer. Thanks!!!
You invest $1, 500 in an account that has an annual interest rate of 3.4%, compounded continuously. How much money will be in the account after 6 years? Round your answer to the nearest whole number.
You invest $1,100 in an account that has an annual interest rate of 2.1%, compounded continuously. How much money will be in the account after 7 years? Round your answer to the nearest whole number.
Suppose the population of a town is 100,000 in 1999. The population increases at a rate of 4.5% every year. What will be the population of the town in 2005? Round your answer to the nearest whole number.
Explanation / Answer
1) for compounding continuously,
A(t)=P*e^(rt)
A(6) =1500*e^(0.034*6)
=~$1839.45
2)A(t)=P*e^(rt)
A(7)=1100*e^(0.021*7)
=$1274.19
3)population=100000*1.045^n
(n is number of years since 1999. So, the population in 2005 (where n=6) is 130,226