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Write a compound interest function to model the following situation. Then, find the balance after the given number of years.$11,000 invested at a rate of 3% compounded monthly; 6 years

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Solution:

Given the amount invested as $11,000 at a rate of 3% compounded monthly for 6 years.

Thus, the compound interest function that model the situation is;


\begin{gathered} A=11000(1+(0.03)/(12))^(12(6)) \\ \\ A=11000(1.0025)^(72) \end{gathered}

Thus, the balance after 6 years is;


A=13166.43

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