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vfiekz [6]
4 years ago
13

Find the balance on the account after 6.2 years if $150000 was invested at an annual interest rate of 2.76% and the interest was

compounded continuously. What is the accumulated value if the money is compounded continuously? Round to the nearest cent.
Mathematics
1 answer:
Wittaler [7]4 years ago
4 0

Answer:

Annual compounding gives $177,582.70  

Continuous compounding gives  $ 177,994.97  

Step-by-step explanation:

In the first place, the balance on account can be computed using the future value formula given below:

FV=PV*(1+r)^N

FV is the future value which is unknown

PV is the amount invested at time zero which is $150,000

r is the rate of return on the investment at 2.76%

N is the period of investment which is 6.2 years

FV=$150,000*(1+2.76%)^6.2

FV=$ 177,582.70  

However if the continuous compounding is opted for the accumulated value is computed thus:

FV=PV* e^(rs*N)

where e is constant figure given as 2.7182818

rs is the rate of return at 2.76%

N is 6.2 years

PV is $150,000

FV=$150,000*2.7182818^(2.76%*6.2)

FV=$150,000*1.186633134

FV=$ 177,994.97  

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Answer:

m∠3 = 105°

Step-by-step explanation:

Line 'l' is parallel to line 'm' and a transversal is intersecting these parallel lines at two distinct points.

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Since, ∠6 = 75° [Given]

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To find our answer we need to set up and solve an equation. Let the total number of guests be represented by g. The cost per guest is $13.50
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Now we've found our equation.
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