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If 3000 dollars is invested in a bank account at an interest rate of 6 per cent per year, find the amount in the bank after 12 years if interest is compounded annually

Find the amount in the bank after 12 years if interest is compounded quaterly
Find the amount in the bank after 12 years if interest is compounded monthly
Finally, find the amount in the bank after 12 years if interest is compounded continuously

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1 answer

  1. 12 years 3000 *1.06^12

    12*4 = 48 quarters
    .06/4 = .015
    so
    3000 * 1.015^48

    12*12 = 144 months
    .06/12 = .005
    3000 * 1.005^144

    dx/dt = .06 x
    dx/x = .06 dt
    ln x = .06 t
    x = Xo e^.06 t
    x = 3000 e^(.06*12)

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