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Lecture#8.3 - Compound and Continuously Compound Interest

The document outlines a tutorial session for a General Foundation Program at Sur University College, focusing on modeling with exponential functions and compound interest. It includes examples and exercises for calculating amounts based on different compounding frequencies and provides homework assignments. The document emphasizes the comparison between simple and compound interest and their relation to exponential growth.

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srishan11
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18 views2 pages

Lecture#8.3 - Compound and Continuously Compound Interest

The document outlines a tutorial session for a General Foundation Program at Sur University College, focusing on modeling with exponential functions and compound interest. It includes examples and exercises for calculating amounts based on different compounding frequencies and provides homework assignments. The document emphasizes the comparison between simple and compound interest and their relation to exponential growth.

Uploaded by

srishan11
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Sur University College

General Foundation Program Student-centered learning

Pure/Applied Math (000122/124) Topic: Modeling with Exponential Functions C.Activity#10 (Tutorial session)

Name: ID# Sec: ( ) Date: 8-12/12/2019

( )
nt
r
Compound Interest A ( t )=P 1+ where A ( t )=amount after t years , P= principal amount
n
n=number of ×interest is compounded per year , r =interest rate per year , t=number of years

Ex#1. A sum of $1000 is invested at an interest rate of 12% per year. Find the amount in the account after 3
years if interest is compounded,

A) Annually B) Semiannually

C) Quarterly D) Monthly

E) Weekly F) Daily

Ex#2. If $10,000 is invested at an interest rate of 3% per year, Find the amount in the account after 5 years
if interest is compounded,

A) Semiannually B) Quarterly

c) Weekly D) Monthly

HWEx#4.1 P#337 Q#57-60 & EX#4.2 P#343 Q#33-36 [PRECALCULUS Mathematics for calculus 7 th edition metric ver.]
ILO’s in OAS: h) Compare simple and compound interest and relate compound interest to exponential growth.
Continuously Compounded Interest A ( t )=P e
rt
where

A ( t )=amount after t years , P= principal amount

r =interest rate per year , t=number of years

EX#1. Find the amount after 3 years if $1000 is invested at an interest rate of 12% per year, compounded
continuously.

EX#2. If $2000 is invested at an interest rate of 3.5% per year, compounded continuously. Find the value of
an investment after 12 years.

EX#3. A sum of $5000 is invested at an interest rate of 5% per year. Find the amount in the account after 10
years if interest is compounded according to the following methods.

A) Semiannually B) Continuously

HWEx#4.1 P#337 Q#57-60 & EX#4.2 P#343 Q#33-36 [PRECALCULUS Mathematics for calculus 7 th edition metric ver.]
ILO’s in OAS: h) Compare simple and compound interest and relate compound interest to exponential growth.

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