Answered

Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Our platform offers a seamless experience for finding reliable answers from a network of experienced professionals. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

$6,700 is invested in an account earning 8. 3% interest (APR), compounded daily. Write a function showing the value of the account after t years, where the annual growth rate can be found from a constant in the function. Round all coefficients in the function to four decimal places. Also, determine the percentage of growth per year (APY), to the nearest hundredth of a percent

Sagot :

sqdancefan

Answer:

  A = $6,700(1 +0.0865^t)

  APY = 8.65%

Step-by-step explanation:

Daily compounding of interest results in an annual growth factor of ...

  gf = (1 +r/365)^365 . . . . for APR = r

Your growth factor is ...

  gf = (1 +0.083/365)^365 ≈ 1.086532

Then the growth rate (APY) is ...

  APY = gf -1 ≈ 8.65%

The account value is multiplied by the growth factor each year, so after t years will be ...

  A = P(1 +APY)^t

  A = $6,700(1 +0.0865)^t . . . . . . . 0.0865 is the annual growth rate

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.