QUESTION 3: The expression below can be used to calculate the balance in a savings account for which an initial deposit of P dollars has been compounded each year for t years at interest rate r. A = P(1+r) Miguel opened a savings account with a deposit of $1000. The interest is compounded each year at a rate of 2%. 1. What will be the balance in Miguel's account at the end of 1 year? 2. What will be the balance in Miguel's account at the end of 4 years? Tim opened a savings account with a deposit of $800. The interest is compounded each year at a rate of 2.5%. 3. Will Miguel or Tim have earned more interest at the end of 4 years?
QUESTION 3: The expression below can be used to calculate the balance in a savings account for which an initial deposit of P dollars has been compounded each year for t years at interest rate r. A = P(1+r) Miguel opened a savings account with a deposit of $1000. The interest is compounded each year at a rate of 2%. 1. What will be the balance in Miguel's account at the end of 1 year? 2. What will be the balance in Miguel's account at the end of 4 years? Tim opened a savings account with a deposit of $800. The interest is compounded each year at a rate of 2.5%. 3. Will Miguel or Tim have earned more interest at the end of 4 years?
Chapter9: Sequences, Probability And Counting Theory
Section: Chapter Questions
Problem 30RE: The twins Sarah and Scott both opened retirement accounts on their 2lst birthday. Sarah deposits...
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Transcribed Image Text:QUESTION 3:
The expression below can be used to calculate the balance in a savings account for which an initial deposit of P dollars
has been compounded each year for t years at interest rate r.
A = P(1+r)t
Miguel opened a savings account with a deposit of $1000. The interest is compounded each year at a rate of 2%.
1. What will be the balance in Miguel's account at the end of 1 year?
2. What will be the balance in Miguel's account at the end of 4 years?
Tim opened a savings account with a deposit of $800. The interest is compounded each year at a rate of 2.5%.
3. Will Miguel or Tim have earned more interest at the end of 4 years?
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