(b) Tara's aunt invests $2000 for her when she is born. The interest rate is 3.5% per year. This rate does not change as long as the money stays invested. The interest is added to the amount she has invested on her birthday each year. The value of the investment after years can be modelled by the equation A = 2000 ×(1.035)' where the A is the value of the investment. (1) How long would it take for the value of the investment to be $2250? (ii) Tara reaches her 18th birthday. Calculate how much extra the investment will be worth if she leaves the money invested for another 3 years beyond her 18th birthday. (iii) Tara is calculating 2000 x 1.035™ (1.035"-1) With reference to the investment, explain what Tara is calculating.
(b) Tara's aunt invests $2000 for her when she is born. The interest rate is 3.5% per year. This rate does not change as long as the money stays invested. The interest is added to the amount she has invested on her birthday each year. The value of the investment after years can be modelled by the equation A = 2000 ×(1.035)' where the A is the value of the investment. (1) How long would it take for the value of the investment to be $2250? (ii) Tara reaches her 18th birthday. Calculate how much extra the investment will be worth if she leaves the money invested for another 3 years beyond her 18th birthday. (iii) Tara is calculating 2000 x 1.035™ (1.035"-1) With reference to the investment, explain what Tara is calculating.
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 66SE: Kyoko has 10,000 that she wants to invest. Her bankhas several investment accounts tochoose from,...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Intermediate Algebra
Algebra
ISBN:
9781285195728
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning