Exponential And Logarithmic Functions Page 4
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411.
Invest $1,000 at 4.5% compounded __________ for 3 years. Find the accumulated amount.
(a) monthly
(b) quarterly
(c) continuously
12.
The formula for the accumulated amount, A, of an investment (or loan) is given by the formula,
(
)
⋅
n
Y
APR
=
+
A
P
1
, where P is the principal, APR is the annual interest rate, and n is the annual
n
number of interest periods, and Y is the number of years.
For an initial investment of $2,000, compounded monthly at a 7 % annual interest rate, find to the
nearest tenth of a year when this investment doubles in value.
(
)
=
⋅
APR
Y
13.
The formula
A
Pe
gives the accumulated amount (A) of an investment when P is the initial
investment, APR is the annual interest rate, and Y is the time in years, assuming continuous
compounding and no deposits or withdrawals.
For an initial investment of $2,000, compounded continuously at a 7% annual interest rate, find to the
nearest tenth of a year when this investment doubles in value.
Complete the table:
APR
3.5%
5%
7%
10%
T
(using 70/P
double
formula)
T
(using log
double
formula)
T
(exact,
double
assuming n = 12)
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