Question

You deposit $3000 in a savings account that earns 2.9% annual interest compounded monthly. You also save $80 per month in a safe at home. Write a function for the total amount of money saved C(t)=b(t)+h(t), where b(t) represents the balance of your savings account and h(t) represents the amount in your safe after t years. Round any decimals to three decimal places.

Answer 1

C(t)=3000(1.002417)^12t+960t

if T=1 year then the saving will be : 4048.17

Explanation:

3000 deposit amount, 2.9 compound monthly interest . save 80 dollars per month at home .

A=p(1+r)^t

A=3000(1+0.029/12)^12t

A=3000(1.002417)^12t dollars

for the amount saved at home=80*12t=960t dollars

C(t)=3000(1.002417)^12t+960t

if T=1 year then the saving will be :

C(t)=3000(1.002417)^12t+960t

=3088.17+960= 4048.17 dollars