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$380 is invested in an account earning 8.9% interest (APR), compounded quarterly. Write a function showing the value of the account after tt years, where the annual growth rate can be found from a constant in the function. Round all coefficients in the function to four decimal places. Also, determine the percentage of growth per year (APY), to the nearest hundredth of a percent.

 Nov 13, 2019

Compunded quarterly means  8.9% / 4     interest per quarter   ...but you need it in DECIMAL form  .089/4 = .0225 interest per period (quarter)

then the formula is

FV = PV (1+i)4t      FV is FUTURE value   PV = PRESENT value ($380)   i is the periodic interest calculated above   t is years....multiplied x 4 to give the number of periods (quarters)


In ONE year the interest would be like this    (1+.02250)4   - 1   = 1.0931 - 1 = .0931 = 9.31 % = APY

 Nov 14, 2019

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