EXPONENTIAL AND LOGARITHMIC FUNCTIONS Max Finding the final amount in a word problem on compound interest Españo Justin deposited $4000 into an account with 3.6% interest, compounded annually. Assuming that no withdrawals are made, how much will he have in the account after 4 years? Do not round any intermediate computations, and round your answer to the nearest cent. ? A |A

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter5: Exponential And Logarithmic Functions
Section5.6: Exponential And Logarithmic Equations
Problem 100E
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EXPONENTIAL AND LOGARITHMIC FUNCTIONS
Max
Finding the final amount in a word problem on compound interest
Españo
Justin deposited $4000 into an account with 3.6% interest, compounded annually. Assuming that no withdrawals are made, how much will he
have in the account after 4 years?
Do not round any intermediate computations, and round your answer to the nearest cent.
?
A
|A
Transcribed Image Text:EXPONENTIAL AND LOGARITHMIC FUNCTIONS Max Finding the final amount in a word problem on compound interest Españo Justin deposited $4000 into an account with 3.6% interest, compounded annually. Assuming that no withdrawals are made, how much will he have in the account after 4 years? Do not round any intermediate computations, and round your answer to the nearest cent. ? A |A
Expert Solution
Step 1

Given,

P $4000, t
We know that
4 years and r 3.6%
nt
A P (1
п,
Step 2

Since, it is compounded annually so n = 1

4
0.036
.. A = 4000 ( 1 +
4000(1.036)
= 4607.857214
4607.86
steps

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