QuestionUse the formula for continuous compounding to compute the balance in the account after 1,5, and 20 years. Also, find the APY for the account. A $\$ 3000$ deposit in an account with an APR of $9.5 \%$
The balance in the account after 1 year is approximately $\$$ $\square$ (Round to the nearest cent as needed.)

Studdy Solution
Subtract 1 from $e^{0.095}$ to find the APY.
$$\text{APY} \approx 1.0995 - 1 = 0.0995 \approx 9.95\%$$
Solution: - The balance after 1 year is approximately $\$3298.50$. - The balance after 5 years is approximately $\$4825.20$. - The balance after 20 years is approximately $\$20057.70$. - The APY for the account is approximately $9.95\%$.