Question

Write a function that represents the situation. Find the balance A in the account after the given time period t. $6200 deposit that earns 8.4% annual interest compounded monthly; 18 months

Answer 1

Answer:

1. $A=P(1+r)^t$
2. $\ 7029.46$

Step-by-step explanation:

As this is the case of exponential growth, we can use the function

$A=P(1+r)^t$

Here A is function of t, where A gives the balance after time t.

P = initial deposit,

r = rate of change or rate of interest,

$6200 deposit that earns 8.4% annual interest compounded monthly for 18 months.

So,

P = $6200,

r = 8.4% annual =$\dfrac{8.4}{12}\%$ monthly = $\dfrac{0.084}{12}$ monthly (as interest compounded monthly)

t = 18 months,

Putting all the values,

$A=6200(1+\frac{0.084}{12})^{18}$

$=6200(1+0.007)^{18}$

$=6200(1.007)^{18}$

$=\ 7029.46$

Answer 2

Answer:

The first answer is actually supposed to be A=6200(1.007)*12t

*=exponent

Step-by-step explanation: