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##### At what rate do we have to invest \$1300 for 10 years compounded continuously to obtain a final amoun

 Mathematics Tutor: None Selected Time limit: 1 Day

the 2nd question is what I want to answer

Apr 16th, 2015

The formula for continuous compounded interest is

A = Pe^rt    where A is the final amount, P is the initial amount, r is the interest rate, and t is the amount of time

So, the equation for your question is

A = 1300e^10r

We need to know the interest rate in order to find the final amount.

Apr 15th, 2015

Or, we need to know what final amount is desired in order to find the interest rate.

Apr 15th, 2015

Find the present value of P of a future amount of A= \$3500 invested at 6% compounded annually for 3 Years

Apr 15th, 2015

compounded annually is differently than compounded continuously, for annually use

A = 3500(1+.06)^3

= \$4168.56

Apr 15th, 2015

Sorry, correction. You want the PRESENT VALUE, so then it's

3500 = P(1+ 0.06)^3

P = 3500/1.06^3 = \$2938.67

Apr 15th, 2015

I have one more question, sorry

Apr 15th, 2015

The Population size of a country was 12.7 million in the year 2000 and 14.3 million in the year 2010. Assume that the population size follows an exponential function.

What will the population size be in the year 2015, assuming the formula holds until then?

When will the population reach 18 million?

Apr 15th, 2015

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Apr 16th, 2015
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Apr 16th, 2015
Dec 4th, 2016
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