Use the formula for continuous compounding to compute the balance in the account after 1, 5, and 20 years.? Also, find the APY f
or the account.a. $10, 000 deposit in an account with an APR of 4.5%?b. The balance in the account after 1 year is approximately?c. The balance in the account after 5 year is approximately?d. The balance in the account after 20 year is approximately?
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Answer:
Step-by-step explanation:
Ill try to break this down, simply:
When we talk about percentages we are talking about how much part of something we have and the percent sign is a just a symbol representing that.
Lets say we have 2 out of 10 apples and we need to convert this to a percentage
First think about how many apples we have in total... and that would be 10, and then how many apples we currently have being 2:
So if we put the part that we have over the whole thing we get:
So now lets turn this into a decimal, when its something over 10 its really easy, all we have to do is move the decimal back one place!
So we have 2 and if we move the decimal back one place we get .2 or 0.2
Now we have our decimal, to convert this into a percentage all we have to do is multiply our decimal by 100
So:
0.2 x 100 = 20%
All you do when you multiply by 100 is move the decimal back over 2 places one place for each zero so:
0.2 --> 2. --> 20.
Which gives us again 20%