Question

72. Compound interest: future value. Belinda invests $25,000 in a retirement fund that earns 4.03% annual interest, compounded continuously. a) Write a function of the form A(t) = Pe" that gives the value of Belinda's account after t years, b) How much will be in Belinda's account after 10 yr? c) When will Belinda's account be worth $40,000? d) When will the value of Belinda's account be double the original value?

Answer 1

Ang ) Given Principal $ 25000 Annual Interest rate : 4.03% So here P 25000 8 4.03 => 0.0403 8= 0.0403 9) All) Pert 0.04038 A(1) ason e f In years. b) After 10 years. A(10) 0.0403 X10 25000 e A(10) ► $37407.67 Belinda's Account have $37407.67 c) Let at years After 10 years, Belinda's account have $40000 0.0403 l uomo 2500 e 0.0403f yumo 25000

8. 5 60.04034 1.6 e 0.04030 Taking 'In both sides In(1.6) 0.04031 & 0.47000 2 11.66 years 0.0403 So, t= 11 years 8 months. So, after years 8 months Belinda's account will $40000 have d) Let after 't years Belinda's account is double. So, 2x 2500 0.0403 I 2suro e 2 = €0.04031 Taking 'In both sides. In 2-0.04036 0.693 = 0.04030 10.693.17.2 0.0403 17. 2 years.

ie 17 years So, after 17.20 years 2 months and 7 days Belinda's aceannt will have deuble the original Volue.
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