= Test: Unit 4 Practice Test Question 4 of 34
This test: 34 point(s) possible
This question: 1 point(s) possible
If Tanisha has $1,000 to invest at 7% per annum compounded quarterly, how long will it be before she has $1,650? If the compounding is continuous, how long will it be?

step-by-step explanation:

what's the question?

step-by-step explanation:

there is no question.

(a) {a₁, a₁r, a₁r², … a₁rⁿ⁻¹, …}

(b) $59 398

step-by-step explanation:

(a) the annual sequence of profits

aₙ = a₁rⁿ⁻¹

the model for the sequence of profits is {a₁, a₁r, a₁r², … a₁rⁿ⁻¹, …} .

(b) profit after 15 yr

  a₁ = $ 30 000

  r = 1.05

a₁₅ = 30 000 × 1.05¹⁴

a₁₅ = 30 000 × 1.979 93

a₁₅ = $59 398

the profit in year 15 will be $59 398.