‘Math IIT Name ‘WS Compound Continuous Interest 1. $600 is deposited in an account that pays 7% annual interest, compounded continuously. What isthe balance after 5 years? P= G00 Az ooe r=007 tare A= $851.44 2. $3000 is deposited in an account that pays 5% annual interest.-Compare the balance at the end of 10 years for continuous compounding of interest with the balance for quarterly compounding. P= 8000 A 2c00= 20S) A= 2000 (14 2.05) 410) r= 0.05 b= 10 A= $494b. 16 A= pc00( 1.0125)” net eorhinuousl 3, $1250 is deposited in an account that pays 6.5% annual interest, compounded continuously. What is the balance after 8 years? <= 0.076) Pe1250 A= inn ¥20,005 4, You deposit $1000 in an account that pays 5% annual interest, compounded continuously. How long will it take for the balance to reach $1500? — a P= 1000 [g00 = lowe OFF tn = 0.06t Lne 20.05 = tn? B. -rost t= Lne ie Bee = 5. You deposit $200 in an account that pays 7% annual interest, compounded continuously. How long will it take for the balance to double? P=200 yoo = 200 8°" tend 20.01 2 snot 0.07 ae ies as ind = 0.01 Lne E=44Aurs 6. For 1960 through 1986, the amount of municipal waste, W (in pounds per person per day), processed for energy recovery in the United States can be approximated by the equation W = 0.007e"""" , where 1=0 represents 1960. In what year did the amount of waste reach 0.22 pound per person? 2 0.22 =0,001e 2 PSE in 22 be24.s4 a gos Tie.c8 Lisle Ey tam 0.0057 1quored = i. 2 2 Yos007 [464] 928 «0.00618 Lne +“ (tie aed onIn Class 3,4,9 Math IID WS Compound Interest Name L How many years will it take $1200 to increase to $1500 if it is invested at 5% compounded Hb ” a 1500 +rncol + 225) ogy» 26laghovs - A=i500 t2? 3 2 [025 t= Log hla f 50.05 - Z109).027S 2. Tnhow many years wil an investment of $2000 amount to $3000%/ i invexment draws 6% interest compounded quarterly? mn . ing _ P=2000 Beco 20001 1 + 9:2) read gb lso) b= bBlycs : ee Zeros" ie e zal. alegros L500 = foool 1 +24 tae 13 4 ott Jog le = Ye log 1-01 te tq 18/4 fog) 1-01 yw Jong will it take $3000 invested at 5% compounded semi-annually is grow to $5000? S00 = B00 (| + 08) 7 ea Be legh2S (EX Jo. 34yrs 1.0275 1o2s** = '°3° [209 +h will $5000 invested at 6% compounded — amount to after 10 years? Arscxot i a A= S000(1.0u)'° 6. What amount must be invested now at 8% compounded quarterly to be worth $6000 after 10 7 a. ee “OE wooo = pli 228) [P= $2717.34 oxo = P().02)° ‘When Melanie was bom her parents started an account in her name at 6% interest compounded semi-annually. How much did they invest if she had $7220 on her eighteenth birthday? A=7220 7220 Plig 204 eue) soe ae et ses icitap aent P= $2491.13) 8 A principal of $5000 is invested at 4% interest compounded annually. How much will the investment amount to after 10 years? ' we) P5005 A = 5000 (14 204 $7401.22) r 2 B= Sco0 (1.04)? 9. How much will the investment in Problem #8 amount to after 10 years if the intrest is compounded semi-annually? ra _ elo Azsvoo(it 224)%9) 5g 7429.74 A = 6000 (1.02)*° 10. The Monarch Savings and Loan Company pays 5% interest on regular passbook accounts, compounded every 4 months. How much will an investment of $6000 be worth after 20 years? P= Ucco v 0823) eos A= lec0o( 1+ 93°) A=$1e,175.82 “tine > Ae =bocol!. iene? t=10 wt ‘to