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Sunny_sXe [5.5K]
3 years ago
8

Grace deposits $1000 in a mutual fund earning 9.25% annual interest, compounded monthly. Write an exponential function that mode

ls this situation where y is the amount of Grace's investment and x is time in years.
Mathematics
1 answer:
Serggg [28]3 years ago
5 0

First, we calculate for the effective interest given the annual interest and the condition that it is compounded monthly.

<span>                                                Ieff = (1 + 0.0925/12)^12 – 1 = 0.09652</span>

The equation that would best represent the value of Grace’s money after x years is equal to,

<span>                                               An = ($1000)(1.09652)^x</span>

<span>Where x is the number of years</span>

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