advanced functions
posted by Anonymous .
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

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 partialyear interest up to the time of withdrawal, however.
Respond to this Question
Similar Questions

compound interest
How do I solve these problems? Complete the table for a savings account in which interest is compounded continuously. 1. Initial Investment: $1000 Annual % Rate: 3.5% Time to Double: ? 
Algebra
Greta invests $10,000 in an investment that pays 3% interest, compounded annually, for the first three years, then 9% interest, compounded annually, for the last three years. Rui invests $10,000 in an investment that pays r% for all … 
Exponential Word Problem
An investment pays 3.5 percent interest, compounded quarterly. a) write an equation to express the amount A, of the investment as a function of time, t, in years. The answer is A(t)=P(1.00875)^4t Ok, but my question is this: Why isn't … 
exponential function
An investment pays 8% interest, compounded annually. a) write an equation that expresses the amount, A, of the investment as a function of time, t, in years. b) determine how long it will take for this investment to double in value … 
Maths B
Kate is thinking about investing $45000 for 5 years. She deposits her money into an account which earns interest paid quarterly at a rate of 3.99% p.a. After 1½ years, Kate withdraws her investment (including interest) and deposits … 
math
RM65000 will be invested for 6 years 9 months. if the investment will be offered 5% compounded semi annualy for the first 2 years, 6% compounded monthly for the next 18 months and 7% compounded daily for the rest of the period ,find … 
math
RM65000 will be invested for 6 years 9 months. if the investment will be offered 5% compounded semi annualy for the first 2 years, 6% compounded monthly for the next 18 months and 7% compounded daily for the rest of the period ,find … 
math
RM65000 will be invested for 6 years 9 months. if the investment will be offered 5% compounded semi annualy for the first 2 years, 6% compounded monthly for the next 18 months and 7% compounded daily for the rest of the period ,find … 
math
RM65000 will be invested for 6 years 9 months. if the investment will be offered 5% compounded semi annualy for the first 2 years, 6% compounded monthly for the next 18 months and 7% compounded daily for the rest of the period ,find … 
Financial Math
An investment of $2500 accumulates at 6% p.a compounded semi annually for 3 years. At that time, the interest rate is changed to 5% compounded monthly. How much is the investment worth 2 years after the change in interest rate?