A bank features a savings account that has an annual percentage rate of r = 4.5% with interest compounded quarterly. Stephanie deposits $3,500 into the account. The account balance can be modeled by the exponential formula r nt S(t) = P(1 + 1)", where S is the future value, P is the present value, r n 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 Stephanie 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.
A bank features a savings account that has an annual percentage rate of r = 4.5% with interest compounded quarterly. Stephanie deposits $3,500 into the account. The account balance can be modeled by the exponential formula r nt S(t) = P(1 + 1)", where S is the future value, P is the present value, r n 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 Stephanie 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.
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 = 4.5% with interest compounded quarterly. Stephanie deposits $3,500
into the account.
The account balance can be modeled by the exponential formula
nt
S(t) = P(1 + 7) "² where S is the future value, P is the present value, r
I
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 =
n =
(B) How much money will Stephanie 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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