An account pays interest at a continuously compounded rate


1. An account pays interest at a continuously compounded rate of 4% per year. Continuous deposits are made to the account at a rate of 2000 per year for 10 years, and then at a rate of 3000 per year for the next 5 years. Calculate the account balance at the end of 15 years.

2. Stacey would like to have? $1 million available to her at retirement. Her investments have an average annual return of 13%. If she makes contributions of ?$270 per? month, will she reach her goal when she retires in 21 ?years?

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Financial Management: An account pays interest at a continuously compounded rate
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