The annual interest rate on a $10,000 loan is 18%. The exponential function that represents this is y=10000(1.18t). Write the exponential function for this loan in terms of a monthly interest rate?

Respuesta :

[tex]\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$10000\\ r=rate\to 18\%\to \frac{18}{100}\dotfill &0.18\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years \end{cases} \\\\\\ A=10000\left(1+\frac{0.18}{12}\right)^{12\cdot t}\implies A=10000(1.015)^{12t}[/tex]

Answer:

B) y = 10000(1.014)12t

Step-by-step explanation: