Sly, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $9000 is deposited in a savings account drawing 51% annual interest compounded continuously. (Round your answer to the nearest cent.) 4 $ 13698 (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S= 9000 1 + 9000(1 + (0.0525))** S = $ that is accrued when interest is compounded quarterly (Round your answer to the nearest cent.)

Sly, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $9000 is deposited in a savings account drawing 51% annual interest compounded continuously. (Round your answer to the nearest cent.) 4 $ 13698 (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S= 9000 1 + 9000(1 + (0.0525))** S = $ that is accrued when interest is compounded quarterly (Round your answer to the nearest cent.)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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