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Suppose that your parents invested P50,000 in your account since the time that
you were born, to prepare for your college education. If the average interest rate is 4.4%
compounded annually, (a) give an exponential model for the situation, and (b) will the
money be doubled by the time you turn 18 years old?

Respuesta :

sqdancefan

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Answer:

  (a) a = 50000(1.044^t)

  (b) yes

Step-by-step explanation:

(a) The compound interest formula tells you the amount of the investment can be modeled by ...

  a = P(1 +r)^t

  a = 50,000(1.044)^t

__

(b) In 18 years, the amount will be ...

  a = 50,000(1.044^18) = 50,000(2.170746)

The multiplier is greater than 2, so the money will be more than doubled in 18 years.

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