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.
(Roundoff 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 ...
 Interest  You deposit $4000 in an account earning 5% interest compounded ...
 college precalculus  An investment of $4000 is deposited into an account in ...
 Math  Please check my work, thank you If $7,800 is deposited into an account ...
 alg. Compounding periods.  a loan requires that the 4% interest be compounded ...
 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  You deposit $10,000 in an account earning 5% interest, compounded semi...
 math  Suppose that you have $12,500 to invest over a 4 year period. There are ...
 Algebra ASAP  Suppose that $17,000 is invested in a savings account paying 5.1...
More Related Questions