Math Problem Statement
Suppose that money is deposited daily into a savings account at an annual rate of $800. If the account pays 4% interest compounded continuously, estimate the balance in the account at the end of 3 years.
Solution
Ask a new question for Free
By Image
Drop file here or Click Here to upload
Math Problem Analysis
Mathematical Concepts
Continuous Compounding
Continuous Deposits
Exponential Growth
Formulas
Continuous compound interest formula: A = Pe^(rt)
Integral for continuous deposits: S = ∫(P(t) * e^(r(T-t))) dt
Theorems
Exponential Growth Theorem
Suitable Grade Level
Undergraduate Level
Related Recommendation
Estimating Balance with Continuous Compounding and Daily Deposits
Continuous Compounding Interest: $800 at 7% for 2 Years
Continuous Compounding and APY Calculation for a $10,000 Deposit at 3.5% APR
Compute Balance and APY Using Continuous Compounding with $8000 at 3.6% APR
Continuous Compound Interest Calculation for a $10,000 Deposit at 1.85% Over 3 Years