Posted by **Anonymous** on Friday, November 27, 2009 at 11:11pm.

An investment pays 8% interest, compounded annualy.

Write an ewuatiin that expressed the amount A, of the investment as a function of time, t, in years

- advanced functions -
**drwls**, Saturday, November 28, 2009 at 2:17am
A = P(1.08)^t

where P is the initial investment or "principle"

If t is not an integer number of years, the next lower integer must be used, since interest is only compunded at the end of a year in this example. Some banks and bond transfer agents will credit partial-year interest up to the time of withdrawal, however.

## Answer this Question

## Related Questions

- exponential function - An investment pays 8% interest, compounded annually. a) ...
- Exponential Word Problem - An investment pays 3.5 percent interest, compounded ...
- Algebra - Greta invests $10,000 in an investment that pays 3% interest, ...
- math - RM65000 will be invested for 6 years 9 months. if the investment will be ...
- math - RM65000 will be invested for 6 years 9 months. if the investment will be ...
- math - RM65000 will be invested for 6 years 9 months. if the investment will be ...
- math - RM65000 will be invested for 6 years 9 months. if the investment will be ...
- compound interest - How do I solve these problems? Complete the table for a ...
- Maths B - Kate is thinking about investing $45000 for 5 years. She deposits her ...
- Financial Math - An investment of $2500 accumulates at 6% p.a compounded semi ...

More Related Questions