Suppose you deposit $2000 at 3% interest compounded continously. Find the average value of your account...

Question

Question

Suppose you deposit $2000 at 3% interest compounded continously. Find the average value of your account during the first 2 ye

math calculus

Answer 1

Answer #1

No p = $ 2000 ; y =30% = 0.03 , toner = f(H = 2000 Average value, Aug = fH) at = sa fie pe oog tot => Argo = come to = Aug

Answer 2

Answer #2

SOLUTION :

FOR CONTINUOUS COMPOUNDING :

FV = A = A0 e^(r t) = 2000 * e^(0.03 * 2) = 2123.67 ($)

Average value of the account during first 2 years

= (A0 + A) / 2

= (2000 + 2123.67)/2

= 2061.84 ($) (ANSWER).

answered by: Tulsiram Garg

Answer 3

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