Question

I need the complete answer to this problem, please circle the final answer and what I should write

Answer 1

Answer:

$f(t) = 8400(1.0018)^{12t}$

2.22%

Step-by-step explanation:

$8400 is invested in an account earning 2.2% interest (APR), compounded monthly.

So, the value of the account after t years will be given by  

$f(t) = 8400 (1 + \frac{2.2}{12 \times 100} )^{12t} = 8400(1.0018)^{12t}$        {Rounded to the four decimal places} (Answer)

Now, for t = 1 year, f(1) = $8586.67

So, the percentage of growth per year (APY) = $\frac{(8586.67 - 8400) \times 100}{8400} = 2.22$% {Rounded to the nearest hundredth of percent} (Answer)