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Unformatted text preview: following: a. How much interest will you accumulate if interest is compounded annually over the next five years? A = P*(1+r) t = 760000*(1+0.05) 5 = 969973.99 total Get the interest: 969973.99 - 760000 = $209973.99 interest b. How much interest will you earn in your account over the next five years with continuous compounding? You can use a scientific calculator or the =Exp() function in Microsoft Excel. If you are crafty you can also find web pages that will do the calculations for you. Regardless, show your steps and your work. A = Pe rt = 760000*e 0.05*5 = 975859.32 total Get the interest: 975859.32 - 760000 = $215859.32 interest...
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This note was uploaded on 01/29/2012 for the course LOG 301 taught by Professor Dr.petters during the Spring '11 term at Trident Technical College.
- Spring '11