Question

Julie is opening a savings account at a bank that offers new clients 0.1% interest compounded quarterly. She deposits $1,700 when she opens the account.

Write an exponential expression in the form a(b)c, where b is a single value, to find the amount of money, in dollars, that will be in the account after t years. Round any decimals to the nearest hundred-thousandth and do not include dollar signs in the expression.

Answer 1

compound interest formula = A=P(1+r/n)^nt

using the information in your question

P = 1700

r = 0.1%

n=4 ( quarterly)

A=1700*(1+0.01/4)^4t

becomes:

A=1700*1.0025^4t