# Math Help - questions about interest rates

1. ## questions about interest rates

How much more interest will be earned if $2,000 is invested for 4 years at 8% compounded continuously, instead? How much more interest will be earned if$2,000 is invested for 4 years at 8% compounded continuously, instead of at 8% compounded quarterly?

A parent wants to have $400,000 available for her child's education. Find the amount that would have to? a parent wants to have$400,000 available for her child's education. Find the amount that would have to

Suppose an individual wants to have \$200,000 available for her child's education. Find the amount that would have to be invested at 12%, compounded continuously, if the number of years until college is:
1 ) 6 years
2 ) 15 years
3) Does leaving the money invested twice as long mean that only half as much is needed initially? Explain why or why not.

thank you.

2. The first is an excellent exploration.

Try this: $2000*\left(1\;+\;\frac{0.08}{m}\right)^{4*m}$

What is it for m = 1? Annually?
What is it for m = 2? Semi-Annually?
What is it for m = 4? Quarterly?
What is it for m = 12? Monthly?
What is it for m = 52? Weekly?
What is it for m = 365? Daily?
What is it for m = 365*24? Hourly?

Is there a limit to the values you are getting? Let's remember a little calculus and track it down.