A principal amount of $11,200 is placed in a savings account with an APR of 2.88% simple interest for 12 years. The same principal amount is placed in a savings account with an APR of 3.19% compounded continuously for 9 years. Part A: How much interest is earned in the simple interest account? Show all necessary steps. Part B: How much interest is earned in the continuously compounded interest account? Show all necessary steps. Part C: If the continuously compounded interest account was replaced with a monthly compounding account, what is the difference in the total account balances for the two compounded interest accounts? Show all necessary steps.
A principal amount of $11,200 is placed in a savings account with an APR of 2.88% simple interest for 12 years. The same principal amount is placed in a savings account with an APR of 3.19% compounded continuously for 9 years. Part A: How much interest is earned in the simple interest account? Show all necessary steps. Part B: How much interest is earned in the continuously compounded interest account? Show all necessary steps. Part C: If the continuously compounded interest account was replaced with a monthly compounding account, what is the difference in the total account balances for the two compounded interest accounts? Show all necessary steps.
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
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A principal amount of $11,200 is placed in a savings account with an APR of 2.88% simple interest for 12 years. The same principal amount is placed in a savings account with an APR of 3.19% compounded continuously for 9 years.
Part A: How much interest is earned in the simple interest account? Show all necessary steps.
Part B: How much interest is earned in the continuously compounded interest account? Show all necessary steps.
Part C: If the continuously compounded interest account was replaced with a monthly compounding account, what is the difference in the total account balances for the two compounded interest accounts? Show all necessary steps.
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