Complete question :
An account grows at an annual interest rate of r , so it grows by a factor of x = 1+ r each year. The function A(x)= 800x^4 + 350x^3 + 500x^2 + 600x gives the amount in the account after 4 years when the growth factor is x.
1) What is the total amount in the account if the interest rate for the account is 3% each year?
Answer:
2,431.311498
Step-by-step explanation:
Given that:
Growth factor (x) = (1 + r) per year
If rate (r) = 3% = 0.03
x = 1 + 0.03 = 1.03
Amount in account after 4 years is given by the function :
A(x)= 800x^4 + 350x^3 + 500x^2 + 600x
Put x = 1.03 to obtain the total amount ;
A(1.03) = 800(1.03)^4 + 350(1.03)^3 + 500(1.03)^2 + 600(1.03)
= 2431.311498
Hence, total amount in account after 4 years = 2,431.311498
