Question

4. You would like to invest 58,500 in a savings account that pays interest of 1.35%, compounded continuously. The formula for computing the future amount. After years is ven by A = 8,500e 0.0133. Te 2.718281828 1828 or use the key on your calculator (a). Calculate the amount you have in the account after 3 years (b). Calculate the amount you have in the account after 10 years.

Answer 1

. : x fc 4(a) AB 4 (a) $ 8,500 1.35% amount invested interest rate time (years) amount in account after 3 years will be $ 8,851.32 $ 8,500 1.35% amount invested interest rate time (years) | amount in account after 10 years will be 10 $ 9,728.56

for formulas and calculations, refer to the image below -

X fac 4(a) 0.0135 amount invested 8500 interest rate time (years) amount in account after 3 years will be =D2*EXP(D3*D4) 4 (b) amount invested 8500 interest rate 0.0135 time (years) amount in account after 10 years will be =D7*EXP(D8*D9)

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