continuous compounding. So, instead of computing interest on a finite number of time periods, for instance monthly or yearly, continuous compounding computes interest assuming constant compounding over an infinite number of periods.

So, it requires the more generalized version of the principal calculation formula such as:

$P\left(t\right)=P_0\times \left[1+\left(i\:/\:n\right)\right]^{\left(n\:\times \:\:t\right)}$

$P\left(t\right)=P_0\times \left[1+\left(\frac{i}{n}\:\right)\right]^{\left(n\:\times \:\:t\right)}$

Here,

$i$ = interest rate

= number of compounding periods

$t$ = time period in years

Part b) Write the model equation for Natalie’s situation?

For continuous compounding the number of compounding periods, $n$ , becomes infinitely large.

Therefore, the formula as we discussed above would become:

$P\left(t\right)=P_0\times e^{\left(i\:\times \:t\right)}$

Part c) How much money will Natalie have after 2 years?

Using the formula

$P\left(t\right)=P_0\times e^{\left(i\:\times \:t\right)}$

$₂ $=\:6107.02$ $

So, Natalie will have $\:6107.02$ $ after 2 years.

Part d) How much money will Natalie have after 2 years?

Using the formula

$P\left(t\right)=P_0\times e^{\left(i\:\times \:t\right)}$

$₁₀ $=13.597.50$ $

So, Natalie will have $13.597.50$ $ after 10 years.

Keywords: word problem, interest

Learn more about compound interest from brainly.com/question/6869962

#learnwithBrainly

5 0

2 years ago

sasho [114]

13 x 3=39
70 x 3= 210
After 38 years there will be foxes. ( Type a whole number.)

8 0

3 years ago