A bank features a savings account that has an annual percentage rate of r = compounded quarterly. Michelle deposits $3,000 5.4% with interest into the account. The account balance can be modeled by the kt where r exponential formula A(t) = a(1+ )",. k 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 = 3000 .054 k 4 (B) How much money will Michelle 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 = compounded quarterly. Michelle deposits $3,000 5.4% with interest into the account. The account balance can be modeled by the kt where r exponential formula A(t) = a(1+ )",. k 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 = 3000 .054 k 4 (B) How much money will Michelle 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.

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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