Question

-121 Ihdicate the x - intercepts, the y - intero How long will it take for the following deposits to reach $8,000? a. $6000 at 3.5% per year compounded quarterly. $6000 at 3.5% per year compounded continuously. 5) b,

Answer 1

Here, Amount: A = $8000 principal P = $6000 Rate r = 3.5% n = no of times compounded per year = 4 (As it is quarterly). A = P(1 + r/n)^nt, where r = 3.5/100 = 0.035 using this formula we have to calculate times so, After plugging the given information we have 8000 = 6000 (1 + 0.035/4)^4.t 8000 = 6000 (1.00875)^4.t = 8000/6000 = (1.00875)^4.t = 4/3 or 1.333 = (1.00875)^4.t Now take log on both sides, ln (1.00875) = ln(1.333) [log x^n = n log x] 4 t = ln (1.333)/ln (1.00875 on solving 4t = 33.0213 t = 8.255 years t = 8.255 years 3 months and 2days. \r\n Again Here Amount (A) = $8000 principal, p = $6000 rate, r = 3.5% = 3.5/100 = 0.035 n = 365 (daily or consciously) After putting these values in A = p (1 + r/n)^nt 8000