5.7 Day 4 Continuously Compounding

You deposit $5,000 in an account that earns 3% interest compounded continuously. Which equation could be used to determine how much money would be in the account after 8 years?

• $A=5000e^{3\cdot8}$

• $A=5000e\cdot3\cdot8$

• $A=5000e\cdot0.03\cdot8$

• $A=5000e^{.03\cdot8}$

You deposit $5,000 in an account that earns 3% interest compounded continuously. How much money would be in the account after 8 years? Round your answer to the nearest hundredth.

(a)  

You deposit $5,000 in an account that earns 3% interest compounded continuously. How long will it take for your account to double. Round to the nearest year.

• 23

• 22

• 21

• 20

Tags

CCSS.HSF.LE.A.4

What annual rate of interest compounded annually should you seek if you want to double your investment in 7 years? Round to TWO decimal places.

• 10.41%

• 10.49%

• .1041

• .1049

Determine the amount that results from investing $3000 at an annual rate of 11% compounded continuously for 5 years.

• $4946.16

• $4852.52

• $5199.76

• $3985.47

Determine the amount that results from investing $500 at an annual rate of 9% compounded continuously for 10 years.

• $1229.80

• $44,051,541.96

• $1228.56

• $1250.13

How long will it take for an investment to double in value if it earns 4% compounded continuously? Round to the nearest YEAR.

• 17 years

• 18 years

• 19 years

• 20 years

Tags

CCSS.HSF.LE.A.4

How long will it take for an investment to triple in value if it earns 5% compounded continuously? Round to the nearest YEAR.

• 20 years

• 21 years

• 22 years

• 23 years

Tags

CCSS.HSF.LE.A.4

What annual rate of interest compounded annually should you seek if you want to triple your investment in 15 years?

• 7.25%

• 7.60%

• 7.83%

• 7.92%

How long will it take for an investment to triple in value if it earns 7% compounded continuously? Round to the nearest year.

• 15 years

• 16 years

• 17 years

• 18 years

Tags

CCSS.HSF.LE.A.4