they told you A=P(1+r/n)^n*t
so, for (a) use the numbers they gave you for P,r,n
Suppose you deposit $2000 in an account with an annual interest rate of
7% compounded quarterly. Use the formula A=P(1+r/n)^n*t and round each answer to 2 decimal places, if necessary.
a. Find an equation that gives the amount of money in the account after t
years.
A(t)=
b. Find the amount of money in the account after 8 years.
After 8 years, there will be $ in the account.
c. How many years will it take for the account to contain $4000?
It will take years for there to be
$4000 in the account.
d. If the same account and interest were compounded continuously, how much money would the account contain after 8 years?
With continuous compounding interest, there would be $ in the account after 8 years.
1 answer
2 answers