Using the image attached to answer the following questions. 4) Suppose you invest $14,500 some place with continuous compounding at a 6.5% interest rate for 10 years. How much money will you have? (2 decimal places) 5) Suppose you have $3800 that you invest at a 5% interest rate compounded continuously for 35 years. How much money will you have? (2 decimal places) 6) F(4) = 183.07 when r = 0.04 for the function f(t) = pe^rt, then what is the approximate value of P
Using the image attached to answer the following questions. 4) Suppose you invest $14,500 some place with continuous compounding at a 6.5% interest rate for 10 years. How much money will you have? (2 decimal places) 5) Suppose you have $3800 that you invest at a 5% interest rate compounded continuously for 35 years. How much money will you have? (2 decimal places) 6) F(4) = 183.07 when r = 0.04 for the function f(t) = pe^rt, then what is the approximate value of P
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Using the image attached to answer the following questions.
4) Suppose you invest $14,500 some place with continuous compounding at a 6.5% interest rate for 10 years. How much money will you have? (2 decimal places)
5) Suppose you have $3800 that you invest at a 5% interest rate compounded continuously for 35 years. How much money will you have? (2 decimal places)
6) F(4) = 183.07 when r = 0.04 for the function f(t) = pe^rt, then what is the approximate value of P?
Transcribed Image Text:Continuously Compounding Interest
Previous
Principal
N
A(t) = Pert
e is a constanl,
irrutional
number (= 2.718)
Rate per time period
(as a decimal)
periods
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