Asked by Anil
$7,000 is invested into two accounts: 4,000 into an account paying 5% interest compounded monthly and
$3,000 into an account paying 4.1% interest compounded continuously.
compute the total interest earned at the end of 2 years.
$3,000 into an account paying 4.1% interest compounded continuously.
compute the total interest earned at the end of 2 years.
Answers
Answered by
drwls
The formulas you require can be found here:
http://www.moneychimp.com/articles/finworks/continuous_compounding.htm
There is also a calculator to make things easier.
http://www.moneychimp.com/articles/finworks/continuous_compounding.htm
There is also a calculator to make things easier.
Answered by
Reiny
amount of first = 4000(1 + .05/12)^24 = 4419.76
amount in 2nd = 3000 e^(2(.05)) = 3315.51
take over
amount in 2nd = 3000 e^(2(.05)) = 3315.51
take over
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