You have a $10,000 investment earning 8% annual interest compounded quarterly. The amount A(t), after t years, is given by A(t)=10000(1.02)4t. The account was opened January 1, 2019.1) Draw a clearly labeled graph of A(t) on the grid below for t running from 0 to year 30. Scale both axes appropriately on your graph. (Find the value in year 30 before you graph anything). 2) Suppose you opened a simple interest savings account on the same day. Based on 10% annual rate of return, the amount B(t), after t years, is given by B(t)=10000+1000t. ---> Is the amount in the investment account always greater than the amount in the savings account? Explain your reasoning.
You have a $10,000 investment earning 8% annual interest compounded quarterly. The amount A(t), after t years, is given by A(t)=10000(1.02)4t. The account was opened January 1, 2019.1) Draw a clearly labeled graph of A(t) on the grid below for t running from 0 to year 30. Scale both axes appropriately on your graph. (Find the value in year 30 before you graph anything). 2) Suppose you opened a simple interest savings account on the same day. Based on 10% annual rate of return, the amount B(t), after t years, is given by B(t)=10000+1000t. ---> Is the amount in the investment account always greater than the amount in the savings account? Explain your reasoning.
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 60SE: The formula for the amount A in an investmentaccount with a nominal interest rate r at any timet is...
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You have a $10,000 investment earning 8% annual interest compounded quarterly. The amount A(t), after t years, is given by A(t)=10000(1.02)4t. The account was opened January 1, 2019.
1) Draw a clearly labeled graph of A(t) on the grid below for t running from 0 to year 30. Scale both axes appropriately on your graph. (Find the value in year 30 before you graph anything).
2) Suppose you opened a simple interest savings account on the same day. Based on 10% annual rate of return, the amount B(t), after t years, is given by B(t)=10000+1000t.
---> Is the amount in the investment account always greater than the amount in the savings account? Explain your reasoning.
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