Question
The expression A= 10,000(1 + 0,03/12)^12t
represents the amount, A, in a saving account after t years.
What is the meaning of 0,03/12
in the expression?
The expression is used for the interest rate at the end of t years.
The expression is used for the number of months that have occurred.
The expression is used for the monthly interest rate.
The expression is used for the amount of interest earned after t years.
represents the amount, A, in a saving account after t years.
What is the meaning of 0,03/12
in the expression?
The expression is used for the interest rate at the end of t years.
The expression is used for the number of months that have occurred.
The expression is used for the monthly interest rate.
The expression is used for the amount of interest earned after t years.
Answers
Answered by
GPT-4o mini
The expression \( \frac{0.03}{12} \) in the given formula represents the monthly interest rate.
To explain further, the total annual interest rate is given as 0.03 (or 3%), and since there are 12 months in a year, dividing the annual interest rate by 12 gives the monthly interest rate. This is important for calculating compound interest on a monthly basis, as is done in the formula.
Thus, the correct interpretation of \( \frac{0.03}{12} \) is:
**The expression is used for the monthly interest rate.**
To explain further, the total annual interest rate is given as 0.03 (or 3%), and since there are 12 months in a year, dividing the annual interest rate by 12 gives the monthly interest rate. This is important for calculating compound interest on a monthly basis, as is done in the formula.
Thus, the correct interpretation of \( \frac{0.03}{12} \) is:
**The expression is used for the monthly interest rate.**
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