Chapter 9.9, Problem 2AGP

To determine

To write functions S(t) and C(t).

Answer to Problem 2AGP

  $S(t)=350{\left(1+\frac{2}{100}\right)}^t$

  $C(t)=2100{\left(1\right)}^t$

Explanation of Solution

Given information:

M deposits $350 in saving account

M deposits $2100 in checking account

Interest rate of saving account is 2%, compounded annually

No interest rate for checking account

Formula used:

  $A(t)=P{\left(1+\frac{r}{100}\right)}^t$

  $A(t)$ amount after t years

P principle amount

r rate of interest

t time in years

Calculation:

For saving account

  $P=350$

  $r=2\%$

  $t=t$

Using formula

  $S(t)=350{\left(1+\frac{2}{100}\right)}^t$

  $S(t)$is amount in saving account after t years

For checking account

  $P=2100$

  $r=0$

  $t=t$

Using formula

  $C(t)=2100{\left(1+\frac{0}{100}\right)}^t$

On solving,

  $C(t)=2100{\left(1\right)}^t$