Question

A particular savings bank pays 2% annual interest compounded continuously. How much will a deposit of $3000 amount to for each time period? Hint: Convert months to days. When needed, use 365 days per year and 30 days per month a. 9 years b. 9 years 9 months c. 9 years 1 month 15 days d. 27 years 98 days a. The amount accumulated after 9 years is (Round to the nearest cent as needed.) b. The amount accumulated after years and 9 months is $ . (Round to the nearest cent as needed.) c. The amount accumulated after 9 years 1 month and 15 days is (Round to the nearest cent as needed.) d. The amount accumulated after 27 years 98 days is $ (Round to the nearest cant as needed.

Answer 1

Amount = Principal x e ^rt

Where r = Rate of interest

t = time in years

a. 3591.65	=3000 x e^(0.02*9)
b. 3645.93	=3000 x e^(0.02*9.75)
c. 3600.60	=3000 x e^(0.02*9.12)
d. 5175.45	=3000 x e^(0.02*27.26)