Glven the function, which statement is true?
1 answer:
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Answer:
The APR is 16%.
Step-by-step explanation:
Jason writes the following function to represent the amount of money in his account after 7 years given quarterly compounding of the $2430 initial deposit as
......... (1)
a. If we want to rewrite the equation in the form
.......... (2)
Then comparing equation (1) and (2) we get, A = 2430 and t = 7
Hence, 7n = 28
⇒ n = 4
Now,
⇒ r = 0.16 i.e. 16%
Therefore, the expression is
(Answer)
b. The APR is 16%. (Answer)