A bank pays interest at a rate of 7%. What is the yearly multiplier if interest is compounded (a) yearly? 0.07 (b) three times a year? 1.0725 (c) continuously? 0.07t = 1.07

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...
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A bank pays interest at a rate of 7%. What is the yearly multiplier if
interest is compounded
(a) yearly? 0.07
(b) three times a year? 1.0725
(c) continuously? 0.07t = 1.07
Transcribed Image Text:A bank pays interest at a rate of 7%. What is the yearly multiplier if interest is compounded (a) yearly? 0.07 (b) three times a year? 1.0725 (c) continuously? 0.07t = 1.07
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