Answer:
a. $1251.5
b. $1254.64
c. 15.4 years
d. 30.56 years
Step-by-step explanation:
Given the information:
- Principle (P) = $800
- Interest = 4.5%
As we know, the formula to find the future value of Jackie deposit with interest is compounded monthly, quaterly, ..is
where:
- P = initial balance
- r = interest rate (decimal)
- n = number of times compounded annually
- t = time
Hence:
a. If the interest is compounded quarterly how much money will Jackie have in 10 years?
<=>
<=> A = $1251.5
d. If Jackie's money is compounded monthly, how long will it take her money to triple?
<=>
<=>
<=>
<=> t = 30.56 years
As we know, the formula to find the future value of Jackie deposit with interest is compounded continuously
A = P* where e is the mathematical constant approximated as 2.7183.
b. If the interest is compounded continuously how much money will Jackie have in 10 years?
<=> A = 800*
<=> A = $1254.64
C. If Jackie's money is compounded continuously, how long will it take her money to double?
<=> P* = 2*800
<=> 800* = 1600
<=> = 2
<=> t = 15.4 years