In one savings account, a principal of $1000 is deposited
Chapter 5, Problem 28(choose chapter or problem)
In one savings account, a principal of $1000 is deposited at 5% per annum. In a second account, a principal of $500 is deposited at 10% per annum. Both accounts compound interest continuously. (a) Estimate the doubling time for each account. (b) On the same set of axes, sketch graphs showing the amount of money in each account over time. Give the (approximate) coordinates of the point where the two curves meet. In financial terms, what is the significance of this point? (In working this problem, assume that the initial deposits in each account were made at the same time.) (c) During what period of time does the first account have the larger balance?
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