$2833 is deposited into an account for 15 years. Determine the accumulation if interest is 6.01% compounded

(a) monthly - $__________,

(b) daily - $__________,

(c) continuously - $____________

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- Apr 2nd 2013, 09:07 AMspyder12Compound Interest
$2833 is deposited into an account for 15 years. Determine the accumulation if interest is 6.01% compounded

(a) monthly - $__________,

(b) daily - $__________,

(c) continuously - $____________

- Apr 2nd 2013, 11:01 AMssgohanf8Re: Compound Interest
I believe the formula for this is A=P(1+r/n)

^{nt}for a non-continuous compund rate. Pe^{rt}for a continuous compound rate.

P=Intially placed in money=$2833

r=Interest Rate=0.0601

n=compund rate per year

t=years=15

So, this would be a function of n, A(n)

Monthly: A(12)=(2833)(1+0.0601/12)^{(12)(15)}=~ $6962.83

Daily: A(365)=(2833)(1+0.0601/365)^{(365)(15)}=~ $6978.00

Continuously: A=2833e^{0.0601(15)}=~ $6978.52 - Apr 2nd 2013, 11:44 AMMINOANMANRe: Compound Interest
Spyder 12

go here Compound Interest Calculator

and calculate everything you need for free. - Apr 2nd 2013, 01:03 PMHallsofIvyRe: Compound Interest
Of course, he won't actually

**learn**anything from that! And, in fact, he can't be sure the answer given there is correct.

ssgohanf8-you are correctly right about that formula. But once you gave that, it might have been better to let spyder12 try it himself first. - Apr 2nd 2013, 06:31 PMspyder12Re: Compound Interest
I'm with you on that one HallsofIvy, but thank you ssgohanf8 for the answers. I have a few more questions like this I will try on my own.