Question

W You deposit $9000 in a savings account that earns 3.6% annual interest compounded monthly. You also save $40 per month in a safe at home. Write a function C(t) =b(t) +h(t), where b(t) represents the balance of your savings account and h(t) represents the amount in your safe after t years. c(t) = Find and interpret C(5). C(5) = $​

Answer 1

Answer:

C(5)= $13,172.05

Step-by-step explanation:

To calculate C(t), we need to divide the formula into two equations:

C(t) =b(t) +h(t)

b(t)= PV*(1+i)^n

n= number of months

i= monthly interest rate

PV= initial investment

h(t)= montlhy deposit* number of months

Now, for C(5); I assume its 5 years:

i= 0.036/12= 0.003

n= 5*12= 60

C(5)= 9,000*(1.003^60) + 40*60

C(5)= $13,172.05