Math

posted by .

$ 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 -

    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 -

    First name: Henry. not Henry00.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    If $3,000.00 is deposited into an account paying 4% interest compounded annually (at the end of each year), how much money is in the account after 2 years?
  2. Math

    Please check my work, thank you If $7,800 is deposited into an account paying 6% interest compounded annually (at the end of each year), how much money is in the account after 2 years?
  3. Math

    If $3,000.00 is deposited into an account paying 3% interest compounded annually (at the end of each year), how much money is in the account after 4 years?
  4. Math 115

    If $9,000.00 is deposited into an account paying 4% interest compounded annually (at the end of each year), how much money is in the account after 5 years?
  5. math

    If $3,000.00 is deposited into an account paying 3% interest compounded annually (at the end of each year), how much money is in the account after 4 years?
  6. math115

    Steve was charged $75.00 interest for 1 month on a $3,000 credit card balance. What was the monthly interest rate?
  7. mat 115

    If $1,000.00 is deposited into an account paying 3% interest compounded annually (at the end of each year), how much money is in the account after 5 years?
  8. math

    If $3,000.00 is deposited into an account paying 3% interest compounded annually (at the end of each year), how much money is in the account after 4 years?
  9. college pre-calculus

    An investment of $4000 is deposited into an account in which interest is compounded monthly. Complete the table by filling in the amounts to which the investment grows at the indicated times. (Round your answers to the nearest cent.) …
  10. Calculus help

    assume that the initial deposit is $20000 and the nominal annual interest rate is 5.7%. Determine the amount in the account in 10 years if the interest is compounded as follows (round your answers to the nearest dollar): (a) Annually: …

More Similar Questions