(2) :

When interest is compounded continuously, the amount of money

increases at a rate proportional to the amount present at any time. That is

.

Either the S should be a P or the P should be a S
(i) Determine the amount accrued at the end of 5 years when 5000 is deposited in a savings account paying 5.75% annual interest compounded continuously.

Answer: about $6,665.45

Correct
(ii) How long will it take for the amount to double?

Answer: A little over 12 years.

Correct
(iii) Compare the amount obtained in(i) with the bakance in the accouont if the interest were compounded quarterly.

Answer: $6,651.82. The difference amounts to a family meal taken at mcdonald's

Correct