Thursday

August 28, 2014

August 28, 2014

Posted by **jh** on Thursday, March 4, 2010 at 6:11pm.

A savings account starts with $600 and pays 5% interest per year, compounded four times per year.

a) A function that models the amount in dollars in the bank account after m years is A(m)=____________?

b) How much will be in the savings account after 3 years? $______?

c) The amount in the account will exceed $1400 after ________ years.

- Precalculus -
**Reiny**, Thursday, March 4, 2010 at 7:24pmamount = 600(1 + .05/4)^(4m)

b) A = 600(1.0125)^12 = ...

c) set A = 1400

1400 = 600(1.0125)^n, remember n is quarter years.

2.33333 = (1.0125)^n

do you know how to do logs? If so, ..

n = log 2.33333/log 1.0125 = 68.2 quarter years or about 17 years.

notice 17 years ---> n= 68

amount = 600(1.0125)^68 = $1396.41

so you will need about 68 and 1/4 years.

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