A tire shop starts off with the same number of tires every month. In January,

How much more would $1,000 earn in 5 years in an account compounded continuously than an account compounded quarterly if the int

s2008m [1.1K]

Answer: There is a difference of $ 1.0228.

Explanation: Given, initial amount or principal = $ 1000,

Time= 5 years and given compound rate of interest = $3.7%

Now, Since the amount in compound continuously,

$A= Pe^{rt}$ , where, r is the rate of compound interest, P is the principal amount and t is the time.

Here, P=$ 1000, t=5 years and r= $3.7%,

Thus, amount in compound continuously , $A=1000e^{3.7\times5/100}$

⇒ $A=1000e^{18.5}=1000\times 1.20321844013=1203.21844013$

Therefore, interest in this compound continuously rate =1203.21844013-1000=203.21844013

now, Since the amount in compound quarterly,

$A=P(1+\frac{r/4}{100} )^{4t}$ , where, r is the rate of compound interest, P is the principal amount and t is the time.

Thus, amount in compound quarterly, $A=1000(1+\frac{3.7/4}{100} )^{4\times5}$

⇒ $A=1000(1+\frac{3.7}{400} )^{20}$

⇒ $A= 1202.19567617$

Therefore, interest in this compound quarterly rate=1202.19567617-1000=202.19567617

So, the difference in these interests=203.21844013-202.19567617=1.02276396 ≈1.0228

4 0

3 years ago

Read 2 more answers

What is the answer to this 4×3^2?<br><br>Evaluate the expression.

Neporo4naja [7]

The answer to this question is 36

6 0

3 years ago

Read 2 more answers

Points (-5,-3) (-2,-2) (-4,-6) reflected over y=-x-1

Mars2501 [29]

Answer:

frfrfr

Step-by-step explanation:

8 0

3 years ago

The probability of tossing heads with a standard coin is 1/2, because it is one of two possible outcomes. The probability of tos

spayn [35]

Answer:

a) 1/64

b) 1/4096

Step-by-step explanation:

As you can tell from the example, the exponent of 1/2 is the number of heads in a row.

a) p(6 heads in a row) = (1/2)^6 = 1/(2^6) = 1/64

b) p(12 heads in a row) = (1/2)^12 = 1/(2^12) = 1/4096

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<em>Additional comment</em>

The probability of a head is 1/2 because we generally are concerned with a "fair coin." That is defined as a coin in which each of the 2 possible outcomes has the same probability, 1/2. Similarly, a "fair number cube" has 6 faces, and the probability of each is defined to be the same as any other, 1/6. Loaded dice and unfair coins do sometimes show up in probability problems.

3 0

2 years ago

A show uses 12 gallons of water in three minutes complete the table and the graph.

gregori [183]

Answer:

2 mins= 8 gallons 3 mins= 12 gallons 4 mins= 16 gallons 5 mins= 20 gallons 6 mins= 24 gallons

Step-by-step explanation:

12 divided by 3 equals 4 so just multiply 4 by each minute

5 0

3 years ago