What is the balance C after 33 years if an account containin

What is the balance C after 33 years if an account containing $3,750 earns interest at an annual percentage rate of 18.19% and is compounded
A) annually? (Report your answer accurate to the nearest 0.01)

B) quarterly? (Again report your answer accurate to the nearest 0.01.)

C) continuously? (You guessed it! Report your answer accurate to the nearest 0.01)

Solution

Principal amount (p)= 3750

Interest rate (r)= 18.19%

Year (t)= 33

n= no of Compound in a year.

A) Annually , n=1

Balance C = p*[1+r/(100*n)]^(t*n)

= 3750 *[1+18.19/100]^33

= $931527

B) Quarterly, n= 4

Balance C = p*[1+r/(100*n)]^(t*n)

= 3750 *[1+18.19/(100*4)]^(33*4)

= $1328720

C) Continuously

Balance C =  Pe^(t*r)

^{= 3750 *e^(33*18.19/100)}

^{= $1516948}