A bank features a savings account that has an annual percentage rate of r = 3% with interest compounded quarterly. Isaiah deposits $2,500 into the account. kt T The account balance can be modeled by the exponential formula¹ A(t) = a (1 - k + where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = T = k= (B) How much money will Isaiah have in the account in 7 years? Amount = $ Round answer to the nearest penny. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year). APY Round answer to 3 decimal places. =
A bank features a savings account that has an annual percentage rate of r = 3% with interest compounded quarterly. Isaiah deposits $2,500 into the account. kt T The account balance can be modeled by the exponential formula¹ A(t) = a (1 - k + where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = T = k= (B) How much money will Isaiah have in the account in 7 years? Amount = $ Round answer to the nearest penny. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year). APY Round answer to 3 decimal places. =
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter4: Exponential And Logarithmic Functions
Section4.CT: Chapter Test
Problem 11CT
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Transcribed Image Text:A bank features a savings account that has an annual percentage rate of r=
quarterly. Isaiah deposits $2,500 into the account.
kt
The account balance can be modeled by the exponential formula A(t) = a (1 + 7
where A is
account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the
number of times each year that the interest is compounded.
(A) What values should be used for a, r, and k?
a =
T =
k=
3% with interest compounded
(B) How much money will Isaiah have in the account in 7 years?
Amount = $
Round answer to the nearest penny.
(C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective
annual percentage rate which includes all compounding in the year).
APY =
Round answer to 3 decimal places.
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