Question

Suppose you invest $10,000 in an account which pays 4% interest per year compounded quarterly.  Use the formula F = P(1 + (i/m))^mt where F is the balance in your account t years into the future, P = the amount of your initial deposit, i is the annual interest rate, and m is the number of times per year you are paid interest.

      a. Find the function which gives your balance in the account t years after you open it.  Use F for the future balance in your account and t for the number of years your account is open.   ____________

      b. Use your answer from part a to find the year in which you balance has grown to $20,000.   ____________

      c. Use your answer from part a to find the balance in your account after 25 years.   ____________

      d. Find dF/dt.   ____________

      e. Use your answer from part d to find the rate of change in the balance in your account after 25 years. ____________   

Answer 1