When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt=rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $8000 is deposited in a savings account drawing 51% annual interest compounded continuously. (Round your answer to the nearest cent.) (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S 8000 1+- S $ 8(4) 50001 (0.0525)) that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.3: The Natural Exponential Function
Problem 40E
Question
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest.
(a) Find the amount of money accrued at the end of 8 years when $8000 is deposited in a savings account drawing 51% annual interest compounded continuously. (Round your answer to the nearest cent.)
$
(b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.)
years
(c) Use a calculator to compare the amount obtained in part (a) with the amount S8000
S = $
8000(0.0525))
8(4)
that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)
Transcribed Image Text:When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $8000 is deposited in a savings account drawing 51% annual interest compounded continuously. (Round your answer to the nearest cent.) $ (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S8000 S = $ 8000(0.0525)) 8(4) that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)
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