10.15 ealinity.com INVESTMENT Previous If you invest $7,538.20 into an account earning an annual interest rate of 9.5890%, how much will you have in your account after years if the interest is compounded quarterly? If the interest is compounded daily? If the interest is compounded continuously: If interest is compounded quarterly: If interest is compounded daily: If interest is compounded continuously: (Note: All answers should include a dollar sign and be accurate to two decimal places) Submit answer Answers Einlee Jcore
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Plugging in the values, we get: A = 7538.20(1 + 0.0589/4)^(4t) A = 7538.20(1.014725)^(4t) After 5 years, we have: A = 7538.20(1.014725)^(4*5) A = 7538.20(1.3149) A = $9,915.67 If the interest is compounded daily, we use the formula: A = P(1 + Show more…
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12. If an investment is made of a principal (initial amount) P at an annual interest rate of decimal, assuming the interest is compounded continuously, the final amount of the investment after t years is given by P * e^(rt). Use this formula and a calculator to answer the below questions: 1. Find the final amount if $1,500 is invested at 7% interest for 2 years, compounded continuously (round to two decimal places). 2. Find the final amount if $19,000 is invested at 2.5% interest for 60 years, compounded continuously (round to two decimal places). 3. Find the amount needed now to have $60 in 2 years at 4% interest, compounded continuously (round to two decimal places).
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12. If an investment is made of a principal (initial amount) P, at an annual interest rate of r (as a decimal), assuming the interest is compounded continuously, the final amount A of the investment after t years is given by A = Pe^rt. Use this formula and a calculator to answer the below questions. a. Find the final amount if $1,500 is invested at 7% interest for 12 years, compounded continuously: (round to two decimal places) b. Find the final amount if $19,000 is invested at 2.5% interest for 60 years, compounded continuously: (round to two decimal places) c. Find the amount needed now to have $600 in 2 years, at 4% interest, compounded continuously: (round to two decimal places)
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