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$570 is invested in an account earning 5.1% interest (APR), compounded quarterly. Write a function showing the value of the account after tt 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.

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Final answer:

To model the account's value after t years with compound interest, use the function A(t) = $570(1.0128)^{4t}. The APY, calculated using the compound interest formula, is approximately 5.20% when compounded quarterly.

Step-by-step explanation:

To write a function showing the value of the account after t years with $570 invested at a 5.1% annual interest rate, compounded quarterly, we can use the compound interest formula: A(t) = P(1 + r/n)nt

Where: A(t) is the amount of money accumulated after t years, including interest.

P is the principal amount (the initial amount of money) which is $570.

r is the annual interest rate (decimal), so 5.1% is 0.051.

n is the number of times that interest is compounded per year, which is 4 for quarterly.

t is the time in years.

So, the function will be: A(t) = $570(1 + 0.051/4)4t

This simplifies to: A(t) = $570(1 + 0.01275)4t

For rounding the coefficients to four decimal places, we get: A(t) = $570(1.0128)4t

To find the annual percentage yield (APY), we use the formula: APY = (1 + r/n)n - 1

APY = (1 + 0.051/4)4 - 1

After calculating, rounding to the nearest hundredth of a percent:

APY ≈ 5.20%

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