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Group Activit The Generous Banker "Double Your Money in 20 Years!" read the bank's advertisement. Adam thinks this sounds like a pretty good deal, but he also thinks he might be able to talk his way into something even better. So he goes in to speak with the banker. "Doubling your money is like increasing it by 100%, I think," he said with a practiced uncertainty. "But what if I need my money before 20 years? Can I get a proportional part of the interest each year, just in case?" Never having studied much mathematics, the banker hesitates. "Well, that seems fair, Mr. Smith," she finally replies. "How much should you get each year?" Adam takes out his calculator. “100% for 20 years... let's see ... 100 divided by 20... I guess that's 5% each year. Can account by 5% each year instead?" you increase my The banker agrees, and Adam deposits $1,000 in an account. 1. How much will be in the account 20 years later? 2. How much will be in the account if Adam instead convinces the bank to give him a proportional amount of interest compounded every 6 months instead of once a year? B. If Adam gets a proportional amount of interest compounded every 3 months, then how much will be in the account 20 years later?

Group Activit The Generous Banker "Double Your Money in 20 Years!" read the bank's advertisement. Adam thinks this sounds like a pretty good deal, but he also thinks he might be able to talk his way into something even better. So he goes in to speak with the banker. "Doubling your money is like increasing it by 100%, I think," he said with a practiced uncertainty. "But what if I need my money before 20 years? Can I get a proportional part of the interest each year, just in case?" Never having studied much mathematics, the banker hesitates. "Well, that seems fair, Mr. Smith," she finally replies. "How much should you get each year?" Adam takes out his calculator. “100% for 20 years... let's see ... 100 divided by 20... I guess that's 5% each year. Can account by 5% each year instead?" you increase my The banker agrees, and Adam deposits $1,000 in an account. 1. How much will be in the account 20 years later? 2. How much will be in the account if Adam instead convinces the bank to give him a proportional amount of interest compounded every 6 months instead of once a year? B. If Adam gets a proportional amount of interest compounded every 3 months, then how much will be in the account 20 years later?

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter1: Functions
Section1.1: Functions Given By Formulas
Problem 18E
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Group Activity The Generous Banker "Double Your Money in 20 Years!" read the bank's advertisement. Adam thinks this sounds like a pretty good deal, but he also thinks he might be able to talk his way into something even better. So he goes in to speak with the banker. "Doubling your money is like increasing it by 100%, I think," he said with a practiced uncertainty. "But what if I need my money before 20 years? Can I get a proportional part of the interest each year, just in case?" Never having studied much mathematics, the banker hesitates. "Well, that seems fair, Mr. Smith," she finally replies. "How much should you get each year?" Adam takes out his calculator. “100% for 20 years... let's see... 100 divided by 20...I guess that's 5% each year. Can you increase my account by 5% each year instead?" The banker agrees, and Adam deposits $1,000 in an account. 1. How much will be in the account 20 years later? 2. How much will be in the account if Adam instead convinces the bank to give him a proportional amount of interest compounded every 6 months instead of once a year? 3. If Adam gets a proportional amount of interest compounded every 3 months, then how much will be in the account 20 years later?
Transcribed Image Text:Group Activity The Generous Banker "Double Your Money in 20 Years!" read the bank's advertisement. Adam thinks this sounds like a pretty good deal, but he also thinks he might be able to talk his way into something even better. So he goes in to speak with the banker. "Doubling your money is like increasing it by 100%, I think," he said with a practiced uncertainty. "But what if I need my money before 20 years? Can I get a proportional part of the interest each year, just in case?" Never having studied much mathematics, the banker hesitates. "Well, that seems fair, Mr. Smith," she finally replies. "How much should you get each year?" Adam takes out his calculator. “100% for 20 years... let's see... 100 divided by 20...I guess that's 5% each year. Can you increase my account by 5% each year instead?" The banker agrees, and Adam deposits $1,000 in an account. 1. How much will be in the account 20 years later? 2. How much will be in the account if Adam instead convinces the bank to give him a proportional amount of interest compounded every 6 months instead of once a year? 3. If Adam gets a proportional amount of interest compounded every 3 months, then how much will be in the account 20 years later?
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