When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, where r is the annual rate of interest.
(a) Find the amount of money accrued at the end of 5 years when $5000 is deposited in a savings account drawing annual interest compounded continuously.
(b) In how many years will the initial sum deposited have doubled?
(c) Use a calculator to compare the amount obtained in part (a) with the amount that is accrued when interest is compounded quarterly.
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