Question

Use the formula for continuous compounding to compute the balance in the account after​ 1, 5, and 20 years.​

Also, find the APY for the account. A ​$15,000 deposit in an account with an APR of 2.5​%.

The balance in the account after 1 year is approximately ​$__ ​(Round to the nearest cent as​ needed.)

The balance in the account after 5 years is approximately ​$___. ​(Round to the nearest cent as​ needed.)

The balance in the account after 20 years is approximately ​$___. ​(Round to the nearest cent as​ needed.)

The APY for the account is approximately ___​% ​(Round to two decimal places as​ needed.)

Answer 1

Solutions Given data, P= $ 15000, 08-5). For 1-year & 5 t=1 A= Pest = 15000 85% = 15000 x ovas A 5- - $ 15379.726 = $ 153803 year - For F 5-7 A= pert = 15000 2.5% 5 = 15000 e a =$16997-226 TA = $ 16998)

For 20 year it t=20 A= pert = 15000 25X80) = 150000 85 A $24730.819 I A = 6 84731 Now Apy = eta 0-025 For year-I = e = 1.025-1 = 2.54 For past O 0565 11 -1 = 1133-1 = 13.37. For years - 20- 0.025x20 =1-648-1 = 64.8%