(2.4) Now assume the growth of the account is not discrete ( \( 12 \) compounding per year), but instead grows continuously. If your client did NOT add any monthly contributions to the \( 401 K \) account, what will the initial value of \( \$ 5,900 \) grow to after \( 10 \) years. DO NOT DO ANY INTERMEDIATE ROUNDING OR YOUR ANSWER MAY BE MARKED WRONG. Answer \( = \$ \$ \) (Round to two places) Compare this to your answer with \( 12 \) compounding periods per year. Is the difference between the two types of compounding (discrete vs. continuous) very different?
Pregunta
Answer
\(5900\times (1+ x)^{10\times12}\)
Related Questions
Q:
Determine the following limits. If infinite, specify \( \infty \) or \( - \infty \) . If an answer does not exist, explain why. (NO POINTS WILL BE GIVEN IF A TABLE OF VALUES IS USED) b. \( \lim _ { x \rightarrow 1 ^ { + } } [ \frac { x } { x - 1 } + \frac { 1 } { \ln ( x ) } ]\)
Q:
9. A board game company models the profit on its latest board game using the quadratic relation
\( P = - 2 x ^ { 2 } + 28 x - 90 , \) where \( x \) is the number of games it produces in hundred thousands and \( P \) is the profit in millions of dollars.
a) What are the break-even points for the company?
b) What is the maximum profit that the company can earn?