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3 years ago

Please give answers due at 8:00 pst

Mathematics

2 answers:

Varvara68 [4.7K]3 years ago

7 0

1.70

5.35

2.135

6..56

3.150

7.36

4.41

8.134

Ivahew [28]3 years ago

3 0

Answer:

1.70

5.35

2.135

6..56

3.150

7.36

4.41

8.134

pls mark me as brainliest.i would really appreciate that.Tq

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1. A retirement account is opened with an initial deposit of $8,500 and earns 8.12% interest compounded monthly. What will the a

Rudik [331]

Answer:

Part A) $\$42,888.48$

Part B) $A=\$22,304$

Part C) The graph in the attached figure

Step-by-step explanation:

Part A) What will the account be worth in 20 years?

we know that

The compound interest formula is equal to

$A=P(1+\frac{r}{n})^{nt}$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

$t=20\ years\\ P=\$8,500\\ r=0.0812\\n=12$

substitute in the formula above

$A=8,500(1+\frac{0.0812}{12})^{12*20}$

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Part B) What if the deposit were compounded monthly with simple interest?

we know that

The simple interest formula is equal to

$A=P(1+rt)$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

$t=20\ years\\ P=\$8,500\\r=0.0812$

substitute in the formula above

$A=8,500(1+0.0812*20)$

$A=\$22,304$

Part C) Could you see the situation in a graph? From what point one is better than the other?

Convert the equations in function notation

$A(t)=8,500(1.0068)^{12t}$ ------> equation A

$A(t)=8,500(1+0.0812t)$ -----> equation B

using a graphing tool

see the attached figure

Observing the graph, from the second year approximately the monthly compound interest is better than the simple interest.

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