A bank features a savings account that has an annual percentage rate of r = 5.4% with interest compounded quarterly. Kristen deposits $10,000 into the account. The account balance can be modeled by the exponential formula A(t) = a(1+ - kt , 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? r = k a = (B) How much money will Kristen have in the account in 10 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 = 5.4% with interest compounded quarterly. Kristen deposits $10,000 into the account. The account balance can be modeled by the exponential formula A(t) = a(1+ - kt , 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? r = k a = (B) How much money will Kristen have in the account in 10 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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