Question

Suppose that $14,000 is invested in a savings account paying 5.2% interest per year.
(a) Write the formula for the amount A in the account after t years if interest is compounded monthly.
A = Po(1+r)^n.

Po = $14,000.

r = 0.052/12 = 0.0043/mo.

n = 12comp./yr. * t yrs. = 12t compounding periods.

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