The principal amount, $5500, earns 3.75% interest compounded continuously.
1 answer:
Answer:
a)
The function that represents the value of the account at any time, t
b)
The total amount accrued, principal plus interest, from compound interest on an original principal of $ 5,500.00 at a rate of 3.75% per year compounded continuously over 6 years is $ 6,887.77.
Step-by-step explanation:
a. Write the function that represents the value of the account at any time, t.
The function that represents the value of the account at any time, t
where
A represents the Future Value
P represents the Principle (Initial Value)
r represents the Interest rate
t represents the time
b) What will the value be after 6 years?
Given
The principal amount P = $5500
Annual Rate r = 3.75% = 3.75/100 = 0.0375
Time Period t = 6 years
To Determine:
The total amount A = ?
Using the formula
substituting the values
$
Therefore, the total amount accrued, principal plus interest, from compound interest on an original principal of $ 5,500.00 at a rate of 3.75% per year compounded continuously over 6 years is $ 6,887.77.
You might be interested in
Hello!
The slope intercept form is y=mx+b, where m is the slope and b is the y-intercept.
First, let's find the y-intercept. This is where the line hits the y-axis. Therefore, it hits at 4 on the y-axis, so our y-intercept is 4.
To find the slope, let's find 2 points on our line. Let's use (0,4) and (2,5). We divide the difference in the y-values by the difference in the x-values as shown below.
Therefore, our slope is 2.
Now we plug these values into our equation.
y=2x+4
I hope this helps!