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; …

Question

asked May 3, 2023 126k views

1 Answer

Leonardo Hermoso · Answer 1 · 2023-05-09T08:40:47+0000

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;