Question

An Investment of $350 earns an interest of 8% that conpunds quarterly. Write a function to model the amount of money you have and find the value after 8 years

Answer 1

Function to model the amount of money;

`A=350(1.02)^(4n)`

Value after 8 years;

`A=350(1.02)^(32)`

= $ 659.60

Explanation:

We apply the compound interest formula;

`A=P(1+r)^(n)`

A represents the amount, P the principal invested, r is the effective rate applicable per time period and n is the time or duration.

Function to model the amount of money;

`A=350(1.02)^(4n)`

Value after 8 years;

`A=350(1.02)^(32)`

= $ 659.60