Question: (a) If $500 is borrowed at 14% interest, find the amounts due at the end of 2 years if the interest is compounded (i) Annually,
(a) If $500 is borrowed at 14% interest, find the amounts due at the end of 2 years if the interest is compounded
(i) Annually, (ii) Quarterly, (iii) Monthly,
(iv) Daily, (v) Hourly and (vi) Continuously.
(b) Suppose $500 is borrowed and the interest is compounded continuously. If A (t) is the amount due after years, where 0 < t < 2, graph A (t) for each of the interest rates 14%, 10%, and 6% on a common screen.
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a Using A Ao1 we have i Annually n 1 ii Quarterly n 4 iii Monthly n 12 3... View full answer
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