An investment of 2000 T a of 8 for year compounded monthly q

An investment of 2000 T a of 8% for year compounded monthly quarterly and continuously

Solution

Time in years is not given .Lets assume = n

a) Principal = $ 2000 ; rate = 0.08/12 =.0067 ; t = n*12

Amount = 2000( 1+0.067)^12n =20001.067^12n

b) quarterly

Amount = 2000( 1+ 0.08/4)^4n

= 2000(1.02)^4n

c) continously

Amount = 2000 e^(0.08n)

= 2000e^0.08n

Plug n i.e. no. of years to solve for amount