Question

Complete the table to determine the balance A for $12,000 invested at rate r for t years, compounded continuously.

r = 4%

Answer 1

Step 1 :

Total amount and interest rate .

.

Formula for continuous compounding : .

Step 2 :

For 10 years compounding, the balance .

For 20 years compounding, the balance .

For 30 years compounding, the balance .

For 40 years compounding, the balance .

For 50 years compounding, the balance .

Comments

Step 3 :

The completed table is :

Solution :

The completed table is :