Question

Use the formula for continuous compounding to compute the balance in the account after 1,5, and 20 years. Also, find the APY for the account. A $8000 deposit in an account with an APR of 3.1%. The balance in the account after 1 year is approximately $1. (Round to the nearest cent as needed.) The balance in the account after 5 years is approximately (Round to the nearest cont as needed.) The balance in the account after 20 years is approximately $ (Round to the nearest cent as needed.) The APY for the account is approximately 11% (Round to two decimal places as needed.)

Answer 1

the balance in the account at end of first year $8248

Green deposit amunt = $8000 APR (Interest rate) - 3.1r. P= 8000 where 0.031 & ad when t= 1 year P(t) = 8000 3.2 (1) - = 800 + 2A8 TP (t) = $82481 o] when tos 8600.3.705) - 8000 & 1240 TP(s) = 9200 11 +0.0015) - = (1. ruissport 21.031-1 - 8owo 3,1% (20) C8000 + 4960 [P(20) = 12960] The APY = (1+r) -1 1 +0.031) - 3.1% ARY = 3.1%

The balance in the account at end of 5th year $9240

The balance in the account at the end of the 20th year $12960

The APY for the account approximately 3.1%