You initially invest $500 in a savings account that pays a yearly interest rate of 3%. (a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars and t be the number of years since the initial investment.) B(t) = dollars (b) What monthly interest rate best represents this account? Round your answer to three decimal places. (c) Calculate the decade growth factor. (Round your answer to two decimal places.) (d) Use the formula you found in part (a) to determine how long it will take for the account to reach $670. (Round your answer to the nearest whole number.) yr Explain how this is consistent with your answer to part (c). . This -Select- the answer found above where the account reaches $570 at the end of At the end of one decade, there will be $ years.
You initially invest $500 in a savings account that pays a yearly interest rate of 3%. (a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars and t be the number of years since the initial investment.) B(t) = dollars (b) What monthly interest rate best represents this account? Round your answer to three decimal places. (c) Calculate the decade growth factor. (Round your answer to two decimal places.) (d) Use the formula you found in part (a) to determine how long it will take for the account to reach $670. (Round your answer to the nearest whole number.) yr Explain how this is consistent with your answer to part (c). . This -Select- the answer found above where the account reaches $570 at the end of At the end of one decade, there will be $ years.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:You initially invest $500 in a savings account that pays a yearly interest rate of 3%.
(a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars and t be the
number of years since the initial investment.)
B(t) =
dollars
(b) What monthly interest rate best represents this account? Round your answer to three decimal places.
(c) Calculate the decade growth factor. (Round your answer to two decimal places.)
(d) Use the formula you found in part (a) to determine how long it will take for the account to reach $670. (Round your answer to the nearest whole number.)
yr
Explain how this is consistent with your answer to part (c).
At the end of one decade, there will be $
This -Select-
v the answer found above where the account reaches $670 at the end of
years.
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