A bank features a savings account that has an annual percentage rate of r = 2.9% with interest compounded semi-annually. Chris deposits $4,000 into the account. The account balance can be modeled by the exponential formula S(t) = P(1 + )", nt where S is the future value, P is the present value, r is the annual percentage rate, n is the number of times each year that the interest is compounded, and t is the time in years. (A) What values should be used for P, r, and n? P = r = n = (B) How much money will Chris have in the account in 9 years? Answer = $ Round answer to the nearest ny. = (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 semi-annually. Chris deposits $4,000 into the account. The account balance can be modeled by the exponential formula S(t) = P(1 + )", nt where S is the future value, P is the present value, r is the annual percentage rate, n is the number of times each year that the interest is compounded, and t is the time in years. (A) What values should be used for P, r, and n? P = r = n = (B) How much money will Chris have in the account in 9 years? Answer = $ Round answer to the nearest ny. = (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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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