Respuesta :
When interset compounded continuously so the amount after 10 years the amount will be $18819.75, when n = 365 and t = 10 years amount will be $18819.22, when n = 12 and t = 10 years amount will be $18803.91.
What is compound interest?
It is defined as the interest on the principal value or deposit and the interest which is gained on the principal value in the previous year.
We can calculate the compound interest using the below formula:
[tex]\rm A = P(1+\dfrac{r}{n})^{nt}[/tex]
Where A = Final amount
P = Principal amount
r = annual rate of interest
n = how many times interest is compounded per year
t = How long the money is deposited or borrowed (in years)
If the interest compounded continuously:
P = $12000, r = 4.5% = 0.045%
[tex]\rm A(t) =12000(e)^{0.045t}[/tex]
When t = 10 years, plug this value in the above expression and calculating, we get;
A(10) = $18819.75
When interest compounded daily:
[tex]\rm A(t) = 12000(1+\dfrac{0.045}{365})^{365t}[/tex]
Plug t = 10 years:
We get;
A(10) = $18819.22
Similarly,
If interest is compounded monthly:
n = 12 and t =10, we get:
A(10) = $18803.91
Thus, when interset compounded continuously so the amount after 10 years the amount will be $18819.75, when n = 365 and t = 10 years amount will be $18819.22, when n = 12 and t = 10 years amount will be $18803.91.
Learn more about the compound interest here:
brainly.com/question/26457073
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