You have invested money in a savings account that pays a fixed monthly interest on the account balance. The following table shows the account balance over the first 3 months. (b) What is the monthly interest factor?Blank 2(c) What is the monthly interest rate?Blank 3 %Blank 1t, in monthsB, in dollarsBlank 2Blank 3Add your answerAdd your answerAdd your answer04501454.952459.953465.01

Answered: in months in dollars 0 450 1 4

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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Related questions

Question

You have invested money in a savings account that pays a fixed monthly interest on the account balance. The following table shows the account balance over the first 3 months.

(b) What is the monthly interest factor?
Blank 2
(c) What is the monthly interest rate?
Blank 3 %
Blank 1
t, in months
B, in dollars
Blank 2
Blank 3
Add your answer
Add your answer
Add your answer
0
450
1
454.95
2
459.95
3
465.01

Expert Solution

Step 1

Here, in the question given an investment in dollars increases at a constant rate. The interest rate paid is fixed and it increases as the compound interest rate. We have to find the monthly interest factor and the monthly interest rate. Just we have to see whether at what pace the value in dollars is increasing. Also, we shall know whether it is a compound or simple interest rate. Although we shall see its for 3 months so chances for the compound are less practical.