Answers

The Brainliest Answer!
2014-10-19T03:20:56+05:30

This Is a Certified Answer

×
Certified answers contain reliable, trustworthy information vouched for by a hand-picked team of experts. Brainly has millions of high quality answers, all of them carefully moderated by our most trusted community members, but certified answers are the finest of the finest.
Compounding continuously means interest for each day is compounded every day. So interest is compounded 365 times a day.  I am ignoring the effect of one day extra in the leap year that will come in the 4 fours.

Interest per day = r = 4.5 /(365 * 100 ) = $ 0.0001233 /day
Number of times the interest is compounded = n = 365 * 4 = 1460

Accumulated total after 4 years = S = P (1 + r )¹⁴⁶°
                  = $ 1,400 (1 + 0.0001233)¹⁴⁶°    = $ 1, 676.08 

Continuous compounding is also obtained by the formula =
         = P e^nr, where e = 2.718
        = $ 1400 * 2.718^(4.5*4/100) = $ 1,676.10 (almost same as above)

Growth per year at the end of 4th year = S_4 * 4.5/100 = $ 75.42 / year


3 4 3
thanx n u r welcom
S_4 typing mistake. It is S = $1,676.10