$2833 is deposited into an account for 15 years. Determine the accumulation if interest is 6.01% compounded
(a) monthly - $__________,
(b) daily - $__________,
(c) continuously - $____________
I believe the formula for this is A=P(1+r/n)nt for a non-continuous compund rate. Pert for a continuous compound rate.
P=Intially placed in money=$2833
n=compund rate per year
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=2833e0.0601(15) =~ $6978.52
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.