A bank features a savings account that has an annual percentage rate of r = 2.9% with interest compounded quarterly. Matthew deposits $2,000 into the account. The account balance can be modeled by the exponential formula A(t) = a where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = r = 2 = k = (B) How much money will Matthew have in the account in 7 years? Answer = $ Round answer to the nearest penny. r kt k + " (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year). APY %. Round answer to 3 decimal places.
A bank features a savings account that has an annual percentage rate of r = 2.9% with interest compounded quarterly. Matthew deposits $2,000 into the account. The account balance can be modeled by the exponential formula A(t) = a where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = r = 2 = k = (B) How much money will Matthew have in the account in 7 years? Answer = $ Round answer to the nearest penny. r kt k + " (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year). APY %. Round answer to 3 decimal places.
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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