Question

Write a function that represents the balance y (in dollars) after t years.

$1400 deposit that earns 10% annual interest compounded semiannually.

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$1400\\ r=rate\to 10\%\to (10)/(100)\dotfill &0.10\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{semiannually, thus twice} \end{array}\dotfill &2\\ t=years \end{cases} \\\\\\ A = 1400\left(1+(0.10)/(2)\right)^(2\cdot t) \implies A = 1400(1.05)^t~\hfill \boxed{y = 1400(1.05)^t}`