Question

$9,300 is invested in an account earning 8.9% interest (APR), compounded daily. 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

The function for the value of the account after t years can be written as:

V(t) = 93000(1.08900365)t

The coefficient of 1.08900365 is the annual growth rate (APR) compounded daily. After rounding to four decimal places, it becomes 1.0890.

The percentage of growth per year (APY) is 8.90%. This is the same as APR, but expressed as a percentage.