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Alinara [238K]
3 years ago
10

Tim invest $5,000 in an account with a bank that offers an annual interest rate of 5%, compounded quarterly. Write the function

that models the growth of a deposit of $5,000.
A(t)= __(__+(__\__)) ^__t
Mathematics
1 answer:
Marina86 [1]3 years ago
3 0

9514 1404 393

Answer:

  A(t) = 5000(1 +.05/4)^(4t)

Step-by-step explanation:

The compound interest formula is ...

  A = P(1 +r/n)^(nt)

where principal P earns interest at annual rate r compounded n times per year for t years. The problem statement tells you P=5000, r=0.05, n=4. Putting these values into the formula gives ...

  A(t) = 5000(1 +0.05/4)^(4t)

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