http://i39.tinypic.com/whz11f.jpg

Please help me with a) and b). I have tried everything but cannot get the answer $12,351.86 for a). What formula do we use to solve for a)? Please help me on this.

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- May 13th 2010, 01:07 PMflorxWhat to do with this geometric problem
http://i39.tinypic.com/whz11f.jpg

Please help me with a) and b). I have tried everything but cannot get the answer $12,351.86 for a). What formula do we use to solve for a)? Please help me on this. - May 13th 2010, 04:08 PMellensius
**(a)**

I guess there is a more pretty way to write this?

The algorithm below does what it says in the question. You put 500$ a month, next time you put money it has passed a month, the account change, so you update the account with the compounded interest before you add the 500.

the time(t)=1/12, and r=0.03

...repeat for all the months.

formula:

f(t) = Pe^tr

Continuously Compounded Interest Formula and Calculator

algorithm:

Code:`var months = 24;`

var rate = 0.03;

var deposite = 500;

var account = 500;

i=1;

while(i<months)

{

account = account*(Math.pow(Math.E,((1/12)*rate)));

account +=deposite;

trace(account);

i++;

}

Code:`1001.2515638028976`

1503.7578242325983

2007.5219219548653

2512.5470054969496

3018.836231267267

3526.392763575127

4035.219774650508

4545.3204446638865

5056.69796174611

5569.355522008325

6083.296329561952

6598.523596538711

7115.040543110698

7632.85039751051

8151.956396051423

8672.361783147619

9194.069811334459

9717.083741288818

10241.40684184946

10767.042390037474

11293.993671076743

11822.263978414492

12351.85661374186