Please help me on this >_
2 answers:
You might be interested in
Answer:
After 1 year: $7,256.59
After 5 years: $8,380.52
After 20 years: $14,381.03
APY = 3.66%
Step-by-step explanation:
If you deposit $7000 with an interest of 3.6%, after 1 year using continuous compounding, you will have
After 5 years you will have
After 20 years
To find the APY for the account, we have to compute the interest earned in one year.
We can do it by cross multiplying or by finding a number x such that
Operating on this equation we obtain
x = 0.0366 or 3.66%