Math Help - Compound Interest

1. Compound Interest

$2833 is deposited into an account for 15 years. Determine the accumulation if interest is 6.01% compounded (a) monthly -$__________,
(b) daily - $__________, (c) continuously -$____________

2. Re: Compound Interest

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 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=2833e0.0601(15) =~$6978.52

3. Re: Compound Interest

Spyder 12

go here Compound Interest Calculator

and calculate everything you need for free.

4. Re: 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.

5. Re: 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.