Chapter 4.2, Problem 10E

Reminder Round all answers to two decimal places unless otherwise indicated.

A Savings Account You initially invested $\$500$ in a saving account that pays a yearly interest rate of $4\%$.

a. Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment.

b. What monthly interest rate best represents this account? Round your answer to three decimal places.

c. Calculate the decade growth factor.

d. Use the formula you found in part $a$ to determine how long it will take for the account to reach $\$740$. Explain how this is consistent with your answer to part $c$.