1. Find the amount in an account where $200 is invested at 3.5% compounded quarterly for a period of 3 years.

2. Find the amount in an account where $200 is invested at 3.5% compounded continuously for a period of 3 years.

Each answer must include the intermediate steps used to arrive at the answer.

Question

Mathematics

Pablo Mcclure

3 February, 07:25

1. Find the amount in an account where $200 is invested at 3.5% compounded quarterly for a period of 3 years.

2. Find the amount in an account where $200 is invested at 3.5% compounded continuously for a period of 3 years.

Each answer must include the intermediate steps used to arrive at the answer.

+5

Answers (1)

Know the Answer?

Rachel · Answer 1

1.) Use the formula A=P (1 + (r/n)) ^nt

n=4, because quarterly

t=3 years

r=.035 (3.5% as a decimal)

P=$200

A=200 (1 + (.035/4)) ^ (4) (3)

A = $222.04

2.) The formula here is A=Pe^rt

P = $200

r=.035

t=3 years

A=200e^ (.035) (3)

A = $222.14

1. Find the amount in an account where $200 is invested at 3.5% compounded quarterly for a period of 3 years.2. Find the amount in an account where $200 is invested at 3.5% compounded continuously for a period of 3 years.Each answer must include the intermediate steps used to arrive at the answer.