Question

Modeling real life, you deposit $9000 in a savings account that earns 3.6% annual interest compounded monthly. Write a function s that represents the balance (in dollars) of your savings account after t years?

Answer 1

To find the balance of your savings account after t years, you can use the formula for compound interest.

Step-by-step explanation:

To find the balance of your savings account after t years, we can use the formula for compound interest:

s = P(1 + r/n)^(nt)

Where:

• s is the balance (in dollars)
• P is the principal (initial deposit)
• r is the annual interest rate (as a decimal)
• n is the number of times interest is compounded per year
• t is the number of years

In this case, the principal is $9000, the annual interest rate is 3.6% (or 0.036 as a decimal), and interest is compounded monthly (so n = 12).

Plugging these values into the formula, we get:

s = 9000(1 + 0.036/12)^(12t)