posted by .

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 -

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.

## Similar Questions

1. ### 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: ?
2. ### 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 …
3. ### 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 …
4. ### 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 …
5. ### 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 …
6. ### 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 …
7. ### 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 …
8. ### 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 …
9. ### 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 …
10. ### 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?

More Similar Questions