Question

Write a compound interest function to model each situation. Then find the balance after the given number of years.

$50,000 invested at a rate of 3% compounded monthly; 6 years

$43,000 invested at a rate of 5% compounded annually; 3 years

$65,000 invested at a rate of 6% compounded quarterly; 12 years​

Answer 1

See explanation

Explanation:

The standard compound interest formula is
`A = P(1+(r)/(n))^(nt)` where:

P is the principal amount

r is the interest rate (typically as a percentage)

t is the time

n is the times compounded per unit of time

So,

1)
`A = 50000(1+(0.03)/(12))^((12)(6)) =59847.42`

2)
`A = 43000(1+(0.05)/(1))^((1)(3)) =49777.88`

3)
`A = 65000(1+(0.06)/(4))^((4)(12)) =132826.08`

You should check my answers though, I may have mixed up some terms.