Test Yourself


Question 1   (Solution)
An amount of $1,240.00 is deposited in a bank paying an annual interest rate of 2.85 %, compounded continuously. Find the balance after 2½ years.

Question 2   (Solution)
An amount of $2,000.00 is deposited in a bank paying an annual interest rate of 2.85 %, compounded continuously.

(a) Find the balance after 3 years.
(b) How long would it take for the money to double?


Question 3   (Solution)
An amount of $3,000.00 is deposited in a bank paying an annual interest rate of 3 %, compounded continuously.

(a) Find the balance after 4 years.
(b) How long would it take for the money to double?


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