Posted by **Melia** on Wednesday, October 24, 2012 at 8:19am.

An investment of $5,000 is made with three options:6% coumpounded annually, quarterly, and continuously.

1.) Create three functions

2.)What will be the value of each investment after 40 years?

3.)Which of the three investments will grow to a value of $30,000?

4.)What will be the value of each investment in 2024?

- Math-Exponential functions -
**Reiny**, Wednesday, October 24, 2012 at 9:04am
1.

a) amount = 5000(1.06)^n , n in years

b) amount = 5000(1.015)^(4n) , n in years

c) amount = 5000(e^(.06n) ) , n in years

2. number crunch, if n = 40

3. look at results of #2

4. depends on your "reference year"

If your "now" is 2012, then n = 2024-2012 = 12

- Math-Exponential functions -
**Melia**, Wednesday, October 24, 2012 at 11:23pm
For part 2, A(t)= $51,429

Q(t)=$54,142

C(t)= $55,116

For part 3, I meant when will each of the 3 investments grow to a value of $30,000. So, if I graphed the functions and look at the tables, would it help me determine the years?

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