Answer:
It will be $506.876 more.
Step-by-step explanation:
The equation for continuously compounded interest is given by
.......... (1)
where, A is the final amount, P is the principal amount, r is the annual interest rate and t is the number of years.
Now, in our case, P = $500, r = 7% i.e 0.07 and t = 10 years.
Then, from equation (1),
dollars
Therefore, the interest will be (A - P) = $(1006.876 - 500) = $506.876. (Answer)
Answer:
The correct option is, Exponential Decay, $23,914.85.
Step-by-step explanation:
A farmer buys a tractor for $50,000.
It is provided that the the tractor depreciates 10% per year.
The exponential function for decay is:
Here,
a = initial value
r = decay rate
t = time
Compute the value of the tractor in 7 years as follows:
Thus, the correct option is, Exponential Decay, $23,914.85.