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An investment of 2000 T a of 8% for year compounded monthly quarterly and continuously
Solution
Time in years is not given .Lets assume = n
a) Principal = $ 2000 ; rate = 0.08/12 =.0067 ; t = n*12
Amount = 2000( 1+0.067)^12n =20001.067^12n
b) quarterly
Amount = 2000( 1+ 0.08/4)^4n
= 2000(1.02)^4n
c) continously
Amount = 2000 e^(0.08n)
= 2000e^0.08n
Plug n i.e. no. of years to solve for amount

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An investment of 2000 T a of 8 for year compounded monthly quarter.pdf

  • 1. An investment of 2000 T a of 8% for year compounded monthly quarterly and continuously Solution Time in years is not given .Lets assume = n a) Principal = $ 2000 ; rate = 0.08/12 =.0067 ; t = n*12 Amount = 2000( 1+0.067)^12n =20001.067^12n b) quarterly Amount = 2000( 1+ 0.08/4)^4n = 2000(1.02)^4n c) continously Amount = 2000 e^(0.08n) = 2000e^0.08n Plug n i.e. no. of years to solve for amount