t Suppose you deposit $1400 in an account with an annual interest rate of 5 % co
ID: 2913228 • Letter: T
Question
t Suppose you deposit $1400 in an account with an annual interest rate of 5 % compounded quarterly. Use the formula A = P(1 + and round n each answer to 2 decimal places, if necessary. a. Find an equation that gives the amount of money in the account after t years. A(t) b. Find the amount of money in the account after 7 years. Preview After 7 years, there will be S in the account. C. How many years will it take for the account to contain $2800? It will take years for there to be $2800 in the account. d. If the same account and interest were compounded continuously, how much money would the account contain after 7 years? With continuous compounding interest, there would be S in the account after 7 years.Explanation / Answer
A = P ( 1 + r/n )^nt
a) equation is
A = 1400 ( 1 + .05/4 )^4t
b) amount after 7 years
A = 1400 ( 1 + .05/4 )^4* 7
A = $ 1982.39
c) 2800 = 1400 ( 1 + .05/4 )^4t
2800/1400 = ( 1.0125)^4t
t = 13.95
it will take 13.95 years for there to be $ 2800 in account
d) A = 1400 e^.05*7
A = $ 1986.69
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.