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

$ 2631 is deposited into an account for 15 years. Determine the accumulation if interest is 8.01 % compounded

(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 8:57pm
Pt = 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 9:01pm
First name: Henry. not Henry00.

## Answer this Question

## Related Questions

- math115 - Steve was charged $75.00 interest for 1 month on a $3,000 credit card ...
- Math - Please check my work, thank you If $7,800 is deposited into an account ...
- math - If $3,000.00 is deposited into an account paying 3% interest compounded ...
- math - If $3,000.00 is deposited into an account paying 3% interest compounded ...
- Math - If $3,000.00 is deposited into an account paying 3% interest compounded ...
- math - If $3,000.00 is deposited into an account paying 4% interest compounded ...
- Math 115 - If $9,000.00 is deposited into an account paying 4% interest ...
- college pre-calculus - An investment of $4000 is deposited into an account in ...
- Calculus help - assume that the initial deposit is $20000 and the nominal annual...
- mat 115 - If $1,000.00 is deposited into an account paying 3% interest ...