Question

You deposit $9000 in a savings account that earns 3.6% annual interest compounded monthly. (See Example 3.) a. Write a functions that represents the balance (in dollars) of your savings account after t years. b. What is the balance of the account after 7 years? c. How many years will it take to double the principal?

Answer 1

represents the balance of your savings account and h(t) represents the amount in your safe after t years. What does C(t) represent? $9000 deposit in a savings account that earns. Therefore, P = 9000 P=9000 P=9000 and r = 3.6 r=3.6 r=3.6% = 0.036 =C(5)= $13,172.05

Explanation:

To calculate C(t), we need to divide the formula into two equations:

C(t) =b(t) +h(t)

b(t)= PV*(1+i)^n

n= number of months

i= monthly interest rate

PV= initial investment

h(t)= montlhy deposit* number of months

Now, for C(5); I assume its 5 years:

i= 0.036/12= 0.003

n= 5*12= 60

C(5)= 9,000*(1.003^60) + 40*60

C(5)= $13,172.05

0.036 =0.036.