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Gnesinka [82]
3 years ago
14

You deposit $675 in an account that earns 3.4% annul interest compounded twice a year. A. Write a function that represents this

situation. B. Find the balance in the account after 2.5 years
Mathematics
1 answer:
Nady [450]3 years ago
7 0

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

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