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How do you go about DECREASING compound interest please?
Cutchswife 4 years ago
b) compounded continuously
A = Pe^(rt)
= 12000 * e^(0.09*5)
= 18819.75 to 2 decimal places
dooglus 5 years ago
a) compounded quarterly:
A = P(1 + r/n)^(nt) where:
P = principal = 12000
r = yearly rate = 0.09
n = compoundings per year = 4
t = term in years = 5
A = P(1 + r/n)^(nt) = 12000*(1+0.09/4)^(4*5)
= 12000*1.0225^20
= 18726.11 to 2 decimal places
dooglus 5 years ago
a) The balance after five years compounded quarterly is $33,600.
(PxR=Interest; 12,000x.09=1080;
compounded quarterly over five years is $21,600.
P + I = Amount.
12000 + 21,600 = 33,600.)
b) is undefined or not sufficient information. By continuously do you mean compounded daily, monthly, etc.?
chaguanas 5 years ago
See http://www.youtube*com/watch?v=LGcem9A0qbo for the definitions and formulae to use.
dooglus 5 years ago