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Suppose you deposit $2,000 in a saving account that pays interest at an annual rate of 4% with interest compounded monthly. Answer the
following questions:

(a)Write a function that represents the amount of money in the account after t years

(b) How much money is going to be in the account after 5 years.

(c) How many years will it take for the account to go over $2,500?

Respuesta :

The function that  represents the amount of money in the account after t years is f(t) = $2000(1.0033^12t).

The money in his account in five years would be $2442.

The number of years it would take to have a value over $2500 is 6 years.

What is the future value of the account?

The formula for calculating future value:

FV = P (1 + r)^nm

  • FV = Future value
  • P = Present value
  • R = interest rate
  • m = number of compounding
  • N = number of years

f(t) =  $2000(1.0033^60) = $2442

f(6) =  $2000(1.0033^72) = 2535.41

To learn more about future value, please check: https://brainly.com/question/18760477

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