Answer:
N = 920(1+0.03)^4t
Step-by-step explanation:
According to the given statement a car repair center services 920 cars in 2012. The number of cars serviced increases quarterly at a rate of 12% per year after 2012.
Rate is 12 % annually
rate in quarterly = 12/4= 3%
We will apply the compound interest equation:
N=P( 1+r/n)^nt
N= ending number of cars serviced.
P= the number of cars serviced in 2012,
r = interest rate
n = the number of compoundings per year
t= total number of years.
Number of compoundings for t years = n*t = 4t
Initial number of cars serviced=920
The quarterly rate of growth = n=4
r = 3%
The growth rate = 1.03
Compound period multiplied by number of years = 920(1.03)^4t
Thus N = 920(1+0.03)^4t
N = number of cars serviced after t years...
