Tuesday

March 3, 2015

March 3, 2015

Posted by **LI** on Sunday, December 11, 2011 at 6:22am.

(a) monthly, (b) daily, (c) continuously.

(Round-off your answers to the nearest cent.)

The accumulation based on

(a) monthly compounding is $ ;

(b) daily compounding is $ ;

(c) continuous compounding is $

Thanks

- Math -
**Henry00**, Sunday, December 11, 2011 at 8:57pmPt = Po(1+r)^n.

a. r = (8.01%/12) / 100% = 0.006675 =

Monthly % rate expressed as a decimal.

n = 12 comp./yr * 15 yrs. = 180 comp.

periods.

Pt = 2631(1.006675)^180 = $8713.48.

b. Pt = Po(1+r)^n.

r = (8.01%/360) / 100% = 0.0002225 =

daily % rate expresed as a decimal.

n = 360 comp./yr * 15 yrs. = 5400 comp.

periods.

Plug the calculated values of r and n

into the given EQ and solve.

c. Pt = Po*e^rt.

r = 8.01% / 100% = 0.0801 = Annual % rate expressed as a decimal.

rt = 0.0801/yr * 15yrs. = 1.2015.

Pt = 2631*e^1.2015 = $8748.34.

- Math -
**Henry**, Sunday, December 11, 2011 at 9:01pmFirst name: Henry. not Henry00.

**Answer this Question**

**Related Questions**

Compound math - (Future Value) Suppose you invest $8000 into an account that ...

Calculus help - assume that the initial deposit is $20000 and the nominal annual...

Math - Please check my work, thank you If $7,800 is deposited into an account ...

Lat math question for some days. Can y'all help? - Huan deposited $850 into a ...

Calc - A person deposits money into a retirement account, which pays 7% interest...

math - Huan deposited $850 into a collegesavings account earning 4.8% ...

math115 - Steve was charged $75.00 interest for 1 month on a $3,000 credit card ...

MATH HELP! Complex Interest - Huan deposited $850 into a collegesavings account ...

algebra - $7,000 is invested into two accounts: 4,000 into an account paying 5% ...

math - I have been staring at this problem forever, and cant seem to dig it up ...