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Applications Nov13
1.
Who wants to be a millionaire?
2.
Who wants to be a millionaire?
What is compound interest? How does this formula "work"? How much money will you have after 5 years if you invest $300.00 at 6% interest compounded annually? monthly?
3.
Who wants to be a millionaire? It turns out that when interest is compounded continuously, we use this formula to calculate the total value of the amount,
A, earned on the principal, P, after any period of time, t. How much money will you have after 5 years if you invest $300.00 at 6% interest compounded continuously? If you invest $300.00 at 6% interest compounded continuously how long will it take to double your money?
4.
5.
What is the value of $5000 after 10 yrs compounded continuously at 8.4%?
rt A= Pe
6.
Continuous compounding usually applies to biological growth.
yt = yoekt yo = the original amount yt = the amount after time t t = numer of time units k = rate of growth
7.
If 1000 type A bacteria at present with a rate of increase 0.025 per hour, how many bacteria do you have after 24 hours?
8.
A radioactive substance decays at a daily rate of 0.13. How long does it take for the substance to decompose to half it's size?
t = 5.332
9.
On May 31st there are 500 rabbits in a forest. June 20th there are 800 rabbits. How many can you expect to have June 28th? k = 0.0235
10.
And Now
Exercise 27
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