CA_GPS_32 - The amount A accumulated after t years is . rt...

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Rev. S08 http://faculty.valenciacc.edu/ashaw/ COLLEGE ALGEBRA NAME: ________________________________ GPS # 32 3.5 EXPONENTIAL FUNCTIONS AND INVESTING II Class Time: ____________ Date: __________ Useful Guidelines: * Future value of an investment with continuous Compounding: If P is the amount invested at an interest rate r per year, the future value S at the end of t years is rt Pe S = , with continuous compounding. * The interest earned on an investment is the future value minus the original investment. 1. Suppose that P is invested in CD account in which interest r is compounded continuously at 6% per year.
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Unformatted text preview: The amount A accumulated after t years is . rt Pe A = Find A if $4000 is invested for a) 6 years b) 20 years 2. a) What is the future value of $2000 invested for 10 years at 9% compounded continuously? b) How much will be earned on this investment? 4. Suppose that $250,000 is invested at 8% interest. a) Find the amount of money in the account after 8 years if the interest is compounded annually. b) Find the amount of money in the account after 8 years if the interest is compounded continuously....
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This note was uploaded on 10/18/2011 for the course MAC 1105 taught by Professor Russel during the Summer '07 term at Valencia.

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