Question

Continuous Compounding. 25 points, please help.

Answer 1

5) $5005

7) $7737

Explanation:

Continuously compounded interest:

`A = Pe^(rt)`

5)

`9119.7 = Pe^(0.04 * 15)`

`9119.7 = P(1.8221188)`

`P = 5005`

Answer: $5005

7)

`29844.9 = Pe^(0.09 * 15)`

`29844.9 = P(3.8574255)`

`P = 7737`

Answer: $7737