2 years ago

I need help with this one please help meee

Mathematics

1 answer:

Ket [755]2 years ago

3 0

Sheeeeeeeeeeesh I feel bad for you

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If Free Yer Assets Bank (FYAB) will give you 0.25% compounded quarterly and I.M.A.Q.T.π bank will give you 0.23% interest compou

ivann1987 [24]

Answer:

FYAB gives a better deal.

Step-by-step explanation:

Compound interest:

$A = P(1 + \dfrac{r}{n})^{nt}$

Continuously compounded interest:

$A = Pe^{rt}$

For the quarterly compounded interest, r = 0.25%, and n = 4.

$2P = P(1 + \dfrac{0.0025}{4})^{4t}$

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For the continuously compounded interest, r =0.23%

$A = Pe^{rt}$

$2P = Pe^{0.0023t}$

$2 = e^{0.0023t}$

$\ln 2 = \ln e^{0.0023t}$

$\ln 2 = 0.0023t$

$t = \dfrac {\ln 2}{0.0023}$

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The quarterly compounded doubles in 277 years.

The continuously compounded doubles in 301 years.

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Step-by-step explanation:

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