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When Joe was born, hiw aunt Sally invested $7000 in a saving account with annual interest of 3.2% compounded monthly : 

 

1. Find the equation of a function A(t) that gives the amount in the account after t years 

 

2. Use A(t) to calculate the amountn in the account when Joe is 20 years old. 

( We are assuming the interest rate remains the same ) 

 

 

Thank you so much ! 

 
 Nov 7, 2015

Best Answer 

 #1
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+5

FV=P(1 + i)^t

FV=7,000(1 + .032/12)^20*12

FV=7,000(1.00267)^240

FV=7,000 X 1.8948661

FV=$13,264.06- the amount that Joe will have in his account when he is 20 years old.

 Nov 7, 2015
 #1
avatar
+5
Best Answer

FV=P(1 + i)^t

FV=7,000(1 + .032/12)^20*12

FV=7,000(1.00267)^240

FV=7,000 X 1.8948661

FV=$13,264.06- the amount that Joe will have in his account when he is 20 years old.

Guest Nov 7, 2015
 #2
avatar+130536 
+5

1.  A = 7000(1 + .032/12)12t

 

2. A = 7000(1 + .032/12 ) 12*20  = about  $ 13264.06

 

 

 

cool cool cool

 Nov 7, 2015

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