Question

15,000 invested at a rate of 4.8% compounded monthly. Write a compound interest function to model the situation . Then find the balance after 2 years.

Answer 1

Answer 565

Step-by-step explanation:

Answer 2

Answer: $46,212.77

Step-by-step explanation: The formula for a compound interest function is A=P(1+r/n)^nt

P=15,000, r=.048, n=1, and t=24. The reason the time is 24 and not 2 is because it is going by months, 2 would just put the answer 2 months ahead and not 2 years. There are 12 months in a year, and 24 months in 2 years. This leads the equation to be: A=15,000(1+.048/1)^(1x24) and the steps to solving it as:

1) A=15,000(1+.048/1)^(1x24) | Add 1 and .048

2) A=15,000(1.048)^24 | Multiply the exponent

3) A=15,000(3.08085162) | Multiply

4) A=46,212.7743 | Round the nearest hundredth

5) A=46,212.77 | Convert to money

6) $46,212.77 | That’s the answer