9514 1404 393
Answer:
a) f(t) = 425(1.02)^(4t)
b) $683.59
Step-by-step explanation:
a) The compound interest formula is ...
A = P(1 +r/n)^(nt)
giving the balance A of an investment of principal P for t years at annual rate r compounded n times per year.
We have P = 425, r=0.08, and n=4, so we can write the function f(t) as ...
f(t) = 425(1+0.08/4)^(4t)
f(t) = 425(1.02)^(4t)
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b) The balance after 6 years is ...
f(6) = 425(1.02^(4·6)) = 425(1.02^24) = 683.59
The account balance after 6 year will be $683.59.
