Asked by Michael
Use the formula for continuous compounding to compute the balance in the account after 1, 5, and 20 years. Also, find the APY for the account.
A $20 comma 000 deposit in an account with an APR of 2.5%.
A $20 comma 000 deposit in an account with an APR of 2.5%.
Answers
Answered by
Reiny
I will do the middle one, you do the rest
amount = 20 e^(5*.025)
= 20 e^.125 = 22.66
What does APY stand for ?
amount = 20 e^(5*.025)
= 20 e^.125 = 22.66
What does APY stand for ?
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