Question

Here are my questions: 1. determine the account balance at 2 years if $20,000 was invested in an account that compounds quarterly at 4.5% per year. Round to the nearest cent.2. determine the account balance at 3 years of $20,000 was invested in an account that compounds monthly at 4.5% per year.3. determine the account balance at 4 years of $20,000 was invested in an account that compounds daily at 4.5% per year.4. Determine the account balance at 5 years or $20,000 was invested in an account that conference continuously at 4.5% per year.5. A bacteria culture grows from 10 bacteria at 1.5% per minute starting at 7:00 am. Find the bacteria count after 12 hours if continuous growth is assumed (round down to the nearest whole bacterium)

Answer 1

Solution

Part 1

For this case we can use this formula:

$A=P(1+\frac{r}{n})^{nt}$

and P= 20000 , r =0.045 , n= 4 and t= 2. Replacing we got:

$A=20000(1+\frac{0.045}{4})^{4\cdot2}=21872.50$

Then the solution for this case would be $21872.50

Part 2

A= 20000, r= 0.045, t= 3, n= 12

And replacing we got:

$A=20000(1+\frac{0.045}{12})^{12\cdot3}=22884.96$

22884.96