Investment Problems An investment of P dollars is deposited in a savings account that is compounded monthly with an annual interest rate of r , where r is expressed as a decimal. The amount of money A in the account after t years is given by A = P ( 1 + r / 12 ) 12 t . Use this equation to complete the following exercises. 63. Determine the time it takes an investment of $1000 to increase to $1100 dollars if it is placed in an account that is compounded monthly with an annual interest rate of 1%( r = 0.01).
Investment Problems An investment of P dollars is deposited in a savings account that is compounded monthly with an annual interest rate of r , where r is expressed as a decimal. The amount of money A in the account after t years is given by A = P ( 1 + r / 12 ) 12 t . Use this equation to complete the following exercises. 63. Determine the time it takes an investment of $1000 to increase to $1100 dollars if it is placed in an account that is compounded monthly with an annual interest rate of 1%( r = 0.01).
Solution Summary: The author explains how the time taken to increase the investment of 1000 to 1100 is 9.53 years.
Investment Problems An investment of P dollars is deposited in a savings account that is compounded monthly with an annual interest rate of r, where r is expressed as a decimal. The amount of money A in the account after t years is given by
A
=
P
(
1
+
r
/
12
)
12
t
. Use this equation to complete the following exercises.
63. Determine the time it takes an investment of $1000 to increase to $1100 dollars if it is placed in an account that is compounded monthly with an annual interest rate of 1%(r = 0.01).
The value V of a bank account in which $450 is invested at 9.00% interest, compounded annually is given by the equation below where t is the time in years. Find the value of the account after 5 years.
V= 450(1.0900)
The value of the account after 5 years is about $
(Round to the nearest cent as needed.)
Chapter 1 Solutions
Single Variable Calculus Format: Unbound (saleable)
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