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If 7000 dollars is invested in a bank account at an interest rate of 7 per cent per year.

A) Find the amount in the bank after 6 years if interest is compounded annually?

B) Find the amount in the bank after 6 years if interest is compounded quaterly?

C) Find the amount in the bank after 6 years if interest is compounded monthly?

D) Finally, find the amount in the bank after 6 years if interest is compounded continuously?

A=?
B=?
C=?
D=?

Thanks again guys!

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3 answers
  1. B)
    compounded quarterly
    ----> i = .07/4 or .0175, and n = 6(4) or 24
    amount = 7000(1.0175)^24
    = $ 10,615.10

    Do A and C the same way

    D
    amount = 7000 e^(6(.07))
    = $ 10,653.73

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  2. $4000 is invested at 9% compounded quarterly. In how many years will the account have grown to $14,500? Round your answer to the nearest tenth of a year

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