Saturday Call from Aunt
Pre-Calculus 2.5 "Exponential" Function Applications Mr, Mui
M.E.T.S. Pre-Calculus Mr. Mui Name:___________________ Period: ________ Date:________ 2.5 “Exponential” Function Applications Continuously compounded interest rate problems 1) Anthony invests $4,000 at 3% interest compounded continuously. How much money will he have in 4 Years http://www.moneychimp.com/articles/finworks/continuous_compounding.htm A = Pe^(rt) = 4000.00*e^(.03*4) = 4000*e^(.12) = 4509.9874063175 ---------------------------------------------------------------------------------------------------------- 2) Jose invested $10,000 at 3% interest compounded continuously. How much will he have after 8 Years? A = Pe^(rt) = 10000*e^(.03*8) = 10000 * (e ^ (.03 * 8)) = 12712.49150321405 --------------------------------------------------------------------------------------------------------- 3) Athena wants to double her money. She put $5,000 in a bank account that pays 4% compounded continuously. How long will it take her to double her m...
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