Question

Find the compound interest and the amount after twelve seconds if the interest is compounded

every three seconds.
Principal 20,000
Rate of interest = 800% per minute
=
Total amount =
Compound interest =

Answer 1

well, we know the rate is compounding at 800% per minute.

the elapsed time will be 12 seconds, and since a minute has 60 seconds, that'd be 12/60 minutes.

the compounding period is 3 seconds, and since a minute has 60 seconds, that means is compounds 60/3 times, or namely 20 times.

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$20000\\ r=rate\to 800\%\to (800)/(100)\dotfill &8\\ n= \begin{array}{llll} \textit{times it compounds per minute}\\ \textit{twenty times} \end{array}\dotfill &20\\ t=minutes\to (12)/(60)\dotfill &(1)/(5) \end{cases}`

`A=20000\left(1+(8)/(20)\right)^{20\cdot (1)/(5)} \implies A =20000(1.4)^4\implies A=76832`