Question

PROBLEM SOLVING You deposit $300 into an investment account that earns 12% annual interest compounded quarterly. The graph shows the balance of a savings account over time. Write the functions that represent the balances of the accounts after t years. Round the growth factor to the nearest hundredth, if necessary.​

Answer 1

Answer:

=25

Step-by-step explanation    

:$\sqrt{x}$ 300 with 12 and you simply get 25

Answer 2

Answer:

= $1,485.17

Step-by-step explanation:

Hi, Niso.

This is a standard compound interest problem, where an amount, P (the principal) is deposited into an account and earns interest at a fixed rate per period.

The compound interest formula is:    A = P (1 +i / 12)12t      

In the above equation, we divide the annual interest rate by 12 to get the monthly rate and multiply the period in years by 12 to get the number of monthly compounding periods.

 

Therefore,         A = 450 (1 + 0.12/12)12t

                           A = 450 (1.01)12t         <--- this is the required function

After 10 years,   A = 450 x 1.0112x10

                            = 450 x 1.01120

                            = 450 x 3.30039

                             = $1,485.17    [this is the amount after 10 years or 120 months]