If you invest $50,000 at 10% interest compounded continuously, what is the average amount in your account over one year?
I thought the equation was Pe^rt but that does not give me the correct answer.
I am in Brief Calculus
Can you show me how to solve the problem with the final answer?
It should be around 52,000
Thanks!
I thought the equation was Pe^rt but that does not give me the correct answer.
I am in Brief Calculus
Can you show me how to solve the problem with the final answer?
It should be around 52,000
Thanks!
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Blah, Im in the same boat...Im pretty sure integrals are involved somehow though.
EDIT: okay i think i got it.
You need to find the average amount in the account over [0,1] because its one year.
So you would use the Pe^rt, then take the integral of that and plug in 1 for t.
So: Integral of: 50,000e^0.1t = 500,000*e^.1t
plug in 1, then plug in zero, and take the difference.
So I got $52,585.46
EDIT: okay i think i got it.
You need to find the average amount in the account over [0,1] because its one year.
So you would use the Pe^rt, then take the integral of that and plug in 1 for t.
So: Integral of: 50,000e^0.1t = 500,000*e^.1t
plug in 1, then plug in zero, and take the difference.
So I got $52,585.46