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velikii [3]
3 years ago
14

Creating an Exponential Model

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

Answer:

P = $300

r = 0.15

n = 12

$544.61  (to the nearest cent)

P(1+r)^t

$524.70  (to the nearest cent)

Step-by-step explanation:

P = principal amount = $300

r = annual interest rate in decimal form = 15% = 15/100 = 0.15

n = number of times interest is compounded per unit t = 12

<u>How much she'll owe in 4 years</u>

P = 300

r = 0.15

n = 12

t = 4

P(1+\frac{r}{n})^{nt}=300(1+\frac{0.15}{12})^{12 \times 4}

= $544.61  (to the nearest cent)

<u>Yearly compounding interest rate</u>

P(1+r)^t

<u>How much she'll owe in 4 years at yearly compounding interest</u>

P(1+r)^t=300(1+0.15)^4

= $524.70  (to the nearest cent)

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