Question

Part 1) You deposit $100 in a bank account that earns 5% interest, compounded monthly.

part 2) Using the function A(t)=P(1+ (r/n))nt, create the function that represents the amount, A, in your account after t years.

part 3) How long will it take until you have $125?

Answer 1

1) A=100(1+0.05/12)^12t
2) 125=100(1+0.05/12)^12t
125/100=(1+0.05/12)^12t
Log(125/100)=12t*log(1+0.05/12)
12t=log(125÷100)÷log(1+0.05÷12)
t=[log(125÷100)÷log(1+0.05÷12)]/12
T=4.5 years