Saturday

December 20, 2014

December 20, 2014

Posted by **James** on Tuesday, April 8, 2008 at 8:22pm.

a. The balance of the account at the end of 20 years

b. the amount of money actually deposited into the account

c. the interest earned during the 20 years.

I think i know that for part a you use the integral to find the future value maybe, but i have no idea how to do b or c

- Calc -
**FredR**, Wednesday, April 9, 2008 at 1:00amcompound interest formula is:

FV=PV(1+(r/n))^(nT)

As n approaches infinity, this formula becomes:

FV=PV*e^(rt)

for the 1st $1000 invested:

FV=1000*e^(.07*20)

for the 2nd $1000 invested:

FV=1000*e^(.07*19)

and so on for 20 years. The sum total of future values minus $20,000 deposited is the interest earned in the 20 years.

- Calc -
**Kati**, Thursday, February 13, 2014 at 12:07ama.) $43,645.71

b.) just do 1000*20 =20,000

c.) a-b (43,645.71-20,000=23645.71)

**Answer this Question**

**Related Questions**

Differential Equations - A college professor contributes $5,000 per year into ...

Finite Math and Applied Calculus - Betty Sue sets up a retirement account. For ...

math - a bank account earns 7% annual interest compounded continuously. you ...

Calc - How much money will we have in 6 months if we invest $1000 into an ...

differential equation - If P(t) is the amount of dollars in a savings bank ...

math - Suppose that you have $12,500 to invest over a 4 year period. There are ...

Math - Bermie deposited $ 4000 into an account that pays 45/a compounded ...

math - Investor A deposits 1,000 into an account that earns an interest rate of ...

algebra - The amount of money in an account with continuously compounded ...

algebra 2 - The amount of money in an account with continuously compounded ...