Question

Please explain how to do this

Answer 1

1

a)

A = 4,408,209,897.52

b)

A = 4,072,118,867.37

2)

Domain of the function is (-2,4)

Explanation:

a)

We have been given the following information which is to be used in determining the accumulated amount, using the given compound interest formula,;

P=$0.93

t=1000 years

r=0.0223

n=12, since the interest is compounded monthly

The compound interest formula to be used is given below;

`A=P(1+(r)/(n)) ^(nt)`

The accumulated amount is obtained by substituting the given values into the formula above;

`A=0.93(1+(0.0223)/(12)) ^(12000)`

A = 4,408,209,897.52

b)

For this part we use the exponential continuous compounding formula since the interest earned on the principal will be compounded continuously. The principal and t remain unchanged but the rate of interest changes to 0.0222. The formula to be used is given below;

`A=Pe^(rt)`

A is the accumulated amount

P is the principal amount

r is the interest rate

t is the time in years

`A=0.93e^((0.0222)1000)`

A = 4072118867.37

2)

The domain of the function is defined as the set of input values for which the function is real and defined.

A graph of the given function is shown in the attachment below;

The function is thus defined for values of x greater than -2 but strictly less than 4