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SpyIntel [72]
3 years ago
12

17. You invest $4000 in an account to save for college.

Mathematics
1 answer:
alexdok [17]3 years ago
7 0

Answer:

a. $4,415.25

b. $4,376.70

c. 2.27986 years

Step-by-step explanation:

a.

A = 4,000 (1 + 0.05/2)^(2 x 2)

   = $4,415.25

b.

A = 4,000 x e^(0.045 x 2)

   = $4,376.70

c. $100 more than option 2 = 4,376.70 + 100

                                              = $4,476.70

t (in years) = ln(4,476.70/4,000) /  ln(1 + 0.05/2)

                 = 2.27986 years

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