Question

The total amount of money in a savings account after t years is given by the function A=1000(1.023)^t .

Answer 1

A=1000(1.023112)^12t         0.19%

Answer 2

Answer:

$A=1000(1+\frac{0.023}{12})^{12t}$

Rate of interest (r) = 0.19% monthly

Step-by-step explanation:

Given: The total amount of money in a saving account after t years.

$A=1000(1.023)^t$

Formula:

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

Now we compare this formula with with given model.

P=1000

Rate of interest annually (r) = 0.023

Time = t

We need to change into monthly interest

New rate will divide by 12

New time will multiply by 12

$r=\frac{0.023}{12}=0.0019$

$t=12\times t =12t$

Function for monthly rate

$A=1000(1+\frac{0.023}{12})^{12t}$

Rate of interest (r) = 0.19% monthly

$\text{Thus, Function Monthly interest rate: }A=1000(1+\frac{0.023}{12})^{12t}\text{ and Monthly Interest rate }= 0.19\%$