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.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:When interest is compounded continuously, 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 5% annual interest compounded continuously. (Round your answer to the nearest cent.)
$ 13698
4
X
(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 +
S = $
9000(1+(0.0525))**
8(4)
that is accrued when interest is compounded quarterly (Round your answer to the nearest cent.)
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