HWC MATHS XXXXXXXXXXSPRING 2021 XXXXXXXXXXMIDTERM TEST NAME__________________________ 1. A bank offers a 10-year CD that earns 2.45% compounded continuously. - If $ 6000 is invested in this CD, how...

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Answered 3 days AfterJul 20, 2021

Answer To: HWC MATHS XXXXXXXXXXSPRING 2021 XXXXXXXXXXMIDTERM TEST NAME__________________________ 1. A bank...

Shivam answered on Jul 23 2021
153 Votes
1.
Formula for the continuous Compounding is given by: P (t) = P0e
rt. Here P (t) is amount after

time t. P0 is initial amount and r is the interest rate.
(a) P0 = 6000 , t = 10 and r = 0.0245
P (10) = 6000× e0.245 = 7665.73
(b) P (t) = 9000 , r = 0.0245 , P0 = 6000
9000 = 6000 ∗ et×0.0245 , e0.0245t = 32 , 0.0245t = ln(3/2)
0.0245t = 0.405 , t = 16.55
2.
f(x) = 2 + ln(x) , f(1) = 2, f ′(x) = 1/x , f ′(1) = 1
Now, we want to find the equation of a line with slope 1 and passing through (1,2). Which is...
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