Compound interest. The amount of money, A ( t ) , in a saving account that pays 6% interest, compounded quarterly for t years, when an initial investment of $ 2000 is made, is given by A ( t ) = 2000 ( 1.015 ) 4 t a. a) Find A ( 3 ) b. b) Find A ( 5 ) c. c) Find a ( 5 ) − A ( 3 ) d. d) Find A ( 5 ) − A ( 3 ) 5 − 3 what rate of change does this represent?
Compound interest. The amount of money, A ( t ) , in a saving account that pays 6% interest, compounded quarterly for t years, when an initial investment of $ 2000 is made, is given by A ( t ) = 2000 ( 1.015 ) 4 t a. a) Find A ( 3 ) b. b) Find A ( 5 ) c. c) Find a ( 5 ) − A ( 3 ) d. d) Find A ( 5 ) − A ( 3 ) 5 − 3 what rate of change does this represent?
Solution Summary: The author calculates the value of A(3) if the amount of money in a savings account pays 6% interest, compounded quarterly for t years, is given by the
Compound interest. The amount of money,
A
(
t
)
,
in a saving account that pays 6% interest, compounded quarterly for t years, when an initial investment of
$
2000
is made, is given by
A
(
t
)
=
2000
(
1.015
)
4
t
a. a) Find
A
(
3
)
b. b) Find
A
(
5
)
c. c) Find
a
(
5
)
−
A
(
3
)
d. d) Find
A
(
5
)
−
A
(
3
)
5
−
3
what rate of change does this represent?
Elementary Statistics: Picturing the World (7th Edition)
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