You initially invest $300 in a savings account that pays a yearly interest rate of 3%.
(a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars andt be the number of years since the initial investment.)
B(t)= 300*1.03^t
What monthly interest rate best represents this account? Round your answer to three decimal places.
Calculate the decade growth factor. (Round your answer to two decimal places.)
You initially invest $300 in a savings account that pays a yearly interest rate of 3%.
(a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars andt be the number of years since the initial investment.)
B(t)= 300*1.03^t
What monthly interest rate best represents this account? Round your answer to three decimal places.
Calculate the decade growth factor. (Round your answer to two decimal places.)
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Your question is a little confusing, since you have already written the formula as an exponential function above!!!!.
The accurate MONTHLY interest rate that BEST represents the account is the following:
(1.03)^1/12=0.002466 X 100=.2466%
A decade(or 10 years) growth factor would be:
1.03^10=1.34.
