Final answer:
The value of $2500 deposited in a bank at 24% interest for 10 years compounded monthly is $13825.76. The value of $2500 deposited in a bank at 24% interest for 10 years compounded continuously is $13465.92.
Step-by-step explanation:
To find the value of $2500 deposited in a bank at 24% interest for 10 years compounded monthly, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial deposit), r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, P = $2500, r = 24%, n = 12 (compounded monthly), and t = 10. Plugging these values into the formula, we get:
A = 2500(1 + 0.24/12)^(12*10) = $13825.76
To find the value of $2500 deposited in a bank at 24% interest for 10 years compounded continuously, we can use the formula: A = Pe^(rt), where e is Euler's number (approximately 2.71828). In this case, P = $2500, r = 24%, and t = 10. Plugging these values into the formula, we get:
A = 2500e^(0.24*10) = $13465.92