Answer:
Step-by-step explanation:
A) Initial amount deposited into the account is $675 This means that the principal,
P = 500
It was compounded twice in a year. This means that
n = 1
The rate at which the principal was compounded is 3.4%. So
r = 3.4/100 = 0.034
It was compounded for t years
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. Therefore, the function that represents this situation would be
A = 675(1 + 0.034/2)^ 2 × t
A = 675(1.017)^2t
B) at t = 2.5,
A = 675(1.017)^2 × 2.5
A = 675(1.017)^5
A = $734.36
