134k views
4 votes
Mike has a bank account whose balance is represented by A(t)=10,000*3.138^t. Where t is in years. Write the function so it reflects the monthly rate of interest . Around the nearest percent

User Greg Young
by
7.9k points

1 Answer

3 votes

9514 1404 393

Answer:

A(m) = 10000×1.10^m; 10% monthly interest

Explanation:

If t is the time in years and m is the corresponding time in months, then we have ...

m = 12t

t = m/12

So, the balance is ...

A(t) = 10000×3.138^t

A(m) = 10000×3.138^(m/12) = 10000×(3.138^(1/12))^m

A(m) = 10000×1.10^m

The monthly interest rate is 10%.

_____

The monthly growth factor 1.10 is 1 more than the monthly growth rate.

growth rate = growth factor -1 = 1.10 -1 = 0.10 = 10%.

User Sahil Kapoor
by
8.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories