A bank features a savings account that has an annual percentage rate of r=4.2% with interest compounded quarterly. Andrew deposits $8,500 into the account. The account balance can be modeled by the exponential formula A(t)=a(1+rk)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? a= , r= , k= (B) How much money will Andrew have in the account in 8 years? Answer = $ . 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=4.2% with interest compounded quarterly. Andrew deposits $8,500 into the account.
The account balance can be modeled by the exponential formula A(t)=a(1+rk)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?
a= , r= , k=
(B) How much money will Andrew have in the account in 8 years?
Answer = $ .
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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