Extended Response 6. When you deposit money in a bank, it will increase exponentially every year. This increase is due to the interest added to it. The interest is compounded and the total value is represented by the equation F(1)=C(1+7) where F() is the future value after years, C is the original value is the interest expressed as a decimal, is the number of times per year the interest is compounded, and is the number of years. If you borrow $100,000.00 with an interest rate of 8% compounded quarterly (every 3 months): A) Substitute the given values and simplify the equation. B) Make a table relating your deposit to the number of years for the first five years. C) By what percentage did the money increase in 5 years?
Extended Response 6. When you deposit money in a bank, it will increase exponentially every year. This increase is due to the interest added to it. The interest is compounded and the total value is represented by the equation F(1)=C(1+7) where F() is the future value after years, C is the original value is the interest expressed as a decimal, is the number of times per year the interest is compounded, and is the number of years. If you borrow $100,000.00 with an interest rate of 8% compounded quarterly (every 3 months): A) Substitute the given values and simplify the equation. B) Make a table relating your deposit to the number of years for the first five years. C) By what percentage did the money increase in 5 years?
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:Extended Response
6. When you deposit money in a bank, it will increase exponentially every year.
This increase is due to the interest added to it. The interest is compounded
and the total value is represented by the equation
F(1)=C(1+7) where F() is the future value after years, C
is the original value is the interest expressed as a decimal, n is the
number of times per year the interest is compounded, and is the number of
years.
If you borrow $100,000.00 with an interest rate of 8% compounded quarterly
(every 3 months):
A) Substitute the given values and simplify the equation.
B) Make a table relating your deposit to the number of years for the first five
years.
C) By what percentage did the money increase in 5 years?
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