Suppose you deposit $4000 at 3% interest compounded continously. Find the average value of your account...

Question

Question

Answer 1

Answer #1

Amount accumulated A=pest Р= 4000, т. 3°а о. 03 Amount Accumulated = 4000 Течhе озу — (мо за €o20 А = gооо хаб• 03 (4) - 4000

Answer 2

Answer #2

SOLUTION :

FOR CONTINUOUS COMPOUNDING :

FV = A = A0 e^(r t) = 4000 * e^(0.03 * 4) = 4509.99 = 4510 ($)

Average value of the account during 4 years = (A0 + A) / 2 = (4000 + 4510)/2 = 4255 ($) (ANSWER).

answered by: Tulsiram Garg

Answer 3

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