Leah has just inherited $12,000. She wants to invest the money so that she can increase the value of
her inheritance. What are some of the ways she can do this?
1. Leah wants to invest the $12,000 in an account that pays 4.5% annual interest.
a. Write equations for the amount A(t) that will be in the account after t years, if the interest is
compounded continuously, daily, and monthly. Then, find the amount after 10 years, rounded
to the nearest cent, for each method of compounding. Complete the table

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.

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:

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Answer plz it would help me alot

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