Question

Suppose that $17,000 is invested in a savings account paying 5.1% interest per year.
(a) Write the formula for the amount A in the account after t years if interest is compounded monthly.
A(t) =


(b) Find the amount in the account after 3 years if interest is compounded daily. (Round your answer to two decimal places.)
A(3) =


(c) How long will it take for the amount in the account to grow to $20,000 if interest is compounded continuously? (Round your answer to two decimal places.)
yr

Answer 1

A(t) = 17000(1.051)^t

b) i = .051/365
A(t) = 17000(1 + .051/365)^(1095) = $19810.31

continuous ...
20000 = 17000 e^(.051t)

solve for t
(I got 3.1866)

Answer 2

A should be to the ^12t power because it's compounded monthly