Question
An investment of $5,000 is made with three options:6% coumpounded annually, quarterly, and continuously.
1.) Create three functions
2.)What will be the value of each investment after 40 years?
3.)Which of the three investments will grow to a value of $30,000?
4.)What will be the value of each investment in 2024?
1.) Create three functions
2.)What will be the value of each investment after 40 years?
3.)Which of the three investments will grow to a value of $30,000?
4.)What will be the value of each investment in 2024?
Answers
Reiny
1.
a) amount = 5000(1.06)^n , n in years
b) amount = 5000(1.015)^(4n) , n in years
c) amount = 5000(e^(.06n) ) , n in years
2. number crunch, if n = 40
3. look at results of #2
4. depends on your "reference year"
If your "now" is 2012, then n = 2024-2012 = 12
a) amount = 5000(1.06)^n , n in years
b) amount = 5000(1.015)^(4n) , n in years
c) amount = 5000(e^(.06n) ) , n in years
2. number crunch, if n = 40
3. look at results of #2
4. depends on your "reference year"
If your "now" is 2012, then n = 2024-2012 = 12
Melia
For part 2, A(t)= $51,429
Q(t)=$54,142
C(t)= $55,116
For part 3, I meant when will each of the 3 investments grow to a value of $30,000. So, if I graphed the functions and look at the tables, would it help me determine the years?
Q(t)=$54,142
C(t)= $55,116
For part 3, I meant when will each of the 3 investments grow to a value of $30,000. So, if I graphed the functions and look at the tables, would it help me determine the years?