College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN: 9781305652231
Author: R. David Gustafson, Jeff Hughes
Publisher: Cengage Learning
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Question
Directions: Use the equation A = Pet to answer each question and be sure to show all your work. 1. If $5,000 is deposited in an account that receives 6.1% interest compounded continuously, how much money is in the account after 6 years? 2. After how many years will an account have $12,000 if $6,000 is deposited, and the account receives 3.8% interest compounded continuously? 3. Abigail wants to save $15,000 to buy a car in 7 years. If she deposits $10,000 into an account that receives 5.7% interest compounded continuously, will she have enough money in 7 years? 4. Daniel deposits $8,000 into a continuously compounding interest account. After 18 years, there is $13,006.40 in the account. What was the interest rate? 5. An account has $26,000 after 15 years. The account received 2.3% interest compounded continuously. How much was deposited initially?
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Transcribed Image Text:Directions: Use the equation A = Pet to answer each question and be sure to show all your work. 1. If $5,000 is deposited in an account that receives 6.1% interest compounded continuously, how much money is in the account after 6 years? 2. After how many years will an account have $12,000 if $6,000 is deposited, and the account receives 3.8% interest compounded continuously? 3. Abigail wants to save $15,000 to buy a car in 7 years. If she deposits $10,000 into an account that receives 5.7% interest compounded continuously, will she have enough money in 7 years? 4. Daniel deposits $8,000 into a continuously compounding interest account. After 18 years, there is $13,006.40 in the account. What was the interest rate? 5. An account has $26,000 after 15 years. The account received 2.3% interest compounded continuously. How much was deposited initially?
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