Problema Solution

Complete the table to determine the balance A for $2400 invested at rate r for t years and compounded n times per year. (Round your answers to the nearest cent.)

r = 5%, t = 10 years

n 1 2 4 12 365 Continuous

A $ $ $ $ $ $

^^^ that's the table.

Answer provided by our tutors

P = $24,000

t = 10 years

r = 0.05 or 5% the annual rate

We will solve the problem when the compounding is continuous.

A = P*e^(rt)

A = 24,000*e^(0.05*10)

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click here to see the step by step calculation

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A = $39,569.31

After 10 years the balance will be $39,569.31.