Question: a. Use the formula for continuous compounding to compute the balance in the account after1, 5, and 20 years.Also, find the APY for the account.

a. Use the formula for continuous compounding to compute the balance in the account after1, 5, and 20 years.Also, find the APY for the account.

A $12,000 deposit in an account with an APR of 3.5%

b.Suppose you start saving today for a $55,000 down payment that you plan to make on a house in 5 years. Assume that you make no deposits into the account after the initial deposit. For the account describedbelow, how much would you have to deposit now to reach your $55,000 goal in 5 years.

An account with daily compounding and an APR of 4%

You should invest $ ___

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