A bank features a savings account that has an annual percentage rate of r = 3.2% with interest compounded quarterly. Zeke deposits $4,500 into the account. The account balance can be modeled by the exponential nt formula S(t) = P(1 + − )”, where S is the future n 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 = = " (B) How much money will Zeke have in the account in 9 years? Answer = $ Round answer to the nearest penny. n = (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 %.
A bank features a savings account that has an annual percentage rate of r = 3.2% with interest compounded quarterly. Zeke deposits $4,500 into the account. The account balance can be modeled by the exponential nt formula S(t) = P(1 + − )”, where S is the future n 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 = = " (B) How much money will Zeke have in the account in 9 years? Answer = $ Round answer to the nearest penny. n = (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 %.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:A bank features a savings account that has an annual
percentage rate of r = 3.2% with interest compounded
quarterly. Zeke deposits $4,500 into the account.
The account balance can be modeled by the exponential
nt
formula S(t) = P(1 + −)”¹, where S is the future
value, P is the present value, r is the annual percentage
rate, ʼn 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 =
=
2
n =
(B) How much money will Zeke have in the account in 9
years?
Answer = $
Round answer to the nearest penny.
(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.
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