Question

Micah invests $5,280 in an account that earns 4.2% interest, compounded monthly. Write function for the amount, that will be in the account after t years. What is the valve of the account after 8 years? A(t) = ________________ after 8 years, the value in the account is ________.

Answer 1

start by writing an expression in the form

`A=p\cdot(1+(r)/(n))^(n\cdot t)`

the p is the principal which is equivalent to the invesment, the r is the interest rate and the n will be equivalent to the number of periods that will be compounded which in this case will be the 12 months

`A=5,280\cdot(1+(0.042)/(12))^(12t)`

now to find the amount on the account after 8 years, replace t as an 8

`A=7384.18`