Question

$7,300 is invested in an account earning 6.6% interest (APR), compounded

monthly. Write a function showing the value of the account after t years, where the
annual growth rate can be found from a constant in the function. Round all
coefficients in the function to four decimal places. Also, determine the percentage of
growth per year (APY), to the nearest hundredth of a percent.

Answer 1

see below

Explanation:

7300 investment

annual rate 6.6% compounded monthly = 6.6/12 months = 0.55% per month

t years = t*12 months

so function is = 7300 * (1+6.6%/12)^12t

APY = (1+0.55%)^12 - 1 = 1.068-1 = 0.068 = 6.8%