Question

Use the formula for continuous compounding to compute the balance in the account after 1,5, and 20 years. Also, find the APY
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Answer #1

Green deposit amunt = $8000 APR (Interest rate) - 3.1r. P= 8000 where 0.031 & ad when t= 1 year P(t) = 8000 3.2 (1) - = 800 +the balance in the account at end of first year $8248

The balance in the account at end of 5th year $9240

The balance in the account at the end of the 20th year $12960

The APY for the account approximately 3.1%

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