Assume $4,000 is invested in the bank now at an annual interest rate of 3%. Find the amount of money that you will have if the money is left in the bank for 6 years and there is continuous compounding.
Assuming Continuous Compounding?car loan
use this equation...
a=Pe^rn
where, a=amount after years
P=principal invested
e=value which is equal to 2.718
r=rate of interest
n=no. of years
using this equation, we%26#039;ll have...
a=($4,000)(2.718)^(0.03)(6)
a=($4,000)(2.718)^0.18
a=($4,000)(1.197)
a=$4,788.78
this is the amount compounded. $4,788.78
hope i helped....=)
Assuming Continuous Compounding?
loan
x=$4000*e^.03*6=$4000*e^.18=$4788.87|||use Pe^rt
Just input 4000 as P, the rate as r, and t as the time in years plug it into a calc and voila.|||Cud solve this using exp() function of Microsoft Excel.
keying in =4000*exp(.03*6) and pressing enter u will get
4788.8695
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