Question

Two accounts each began with a deposit of exist10,000. Both accounts have rates of 6.5%, but one account compounds interest once a year while the other account compounds interest continuously. Make a table that shows the amount in each account and the interest earned after one year, five, years, ten years, and 20 years. (Round ALL values to the nearest Dollar AND DO NOT include Dollar Signs)

Answer 1

Explanation:

Given data

principal P = $10000

rate (r) = 6.5%

to find out

amount in account and the interest earned after one year, five, years, ten years, and 20 years

solution

we know the formula for compounds interest continuously i.e.

amount = principal
`e^(rt)` ..............1

and

compounds interest annually i.e.

amount = principal
`(1+r/100)^(t)` ..................2

here put value principal rate and time period 1, 5 10 and 20 years

and we get the amount for each time period

than for interest = amount - principal we get interest

as that we calculate all value

i put all value in table here