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3. Mrs. Galicia started a savings account for her family and started it with an initial deposit of $1600. The account earns 3.75% interest compounded quarterly.
(a) Write an equation to represent the anount of money in the account as a function of time in years.
(b) How much money will be present in the account in 5 years. *please show plug in step*

Respuesta :

chibabykalu16

Hey there!

--› Initial deposit: 1600

--› rate = 3.75%

a) First, convert R as a percent to r as a decimal

r = R/100

r = 3.75/100

r = 0.0375 rate per year,

Substitute into formula

= A = P(1 + r/n)nt

A = P(1 + 0.0375/4)^4t

A = 1,600.00(1 + 0.009375)^4t

b)

A = 1,600.00(1 + 0.009375)^4t

A = 1,600.00(1 + 0.009375)^4(5)

A = 1,600.00(1 + 0.009375)^(20)

A = $1,928.28

abidemiokin

The amount of money that will be present in the account in 5 years is P(5) = $1923.36

Exponential equations

The standard exponential equations is expressed as:

p(t) = p0(1+r)^t

where:

  • Po is the initial deposit = $1600
  • Rate "r" =3.75% = 0.0375
  • time "t" = 5 years

Substitute

P(t) =1600(1+ 0.0375)^t
P(t) = 1600 (1.0375)^t

Hence the equation to represent the aount of money in the account as a function of time in years is P(t) = 1600 (1.0375)^t

If t =5 years

P(t) = 1600 (1.0375)^t

P(t) = 1600 (1.0375)^5
P(5) = $1923.36

Hence the amount of money that will be present in the account in 5 years is P(5) = $1923.36

learn more on compound interest here: https://brainly.com/question/24924853

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