Question

I need the complete answer to this problem, please circle the final answer and what I should write

Answer 1

`f(t) = 8400(1.0018)^(12t)`

2.22%

Explanation:

$8400 is invested in an account earning 2.2% interest (APR), compounded monthly.

So, the value of the account after t years will be given by

`f(t) =  8400 (1 + (2.2)/(12 * 100) )^(12t) = 8400(1.0018)^(12t)` {Rounded to the four decimal places} (Answer)

Now, for t = 1 year, f(1) = $8586.67

So, the percentage of growth per year (APY) =
`((8586.67 - 8400) * 100)/(8400) = 2.22`% {Rounded to the nearest hundredth of percent} (Answer)