Intermediate Algebra (6th Edition)

Published by Pearson
ISBN 10: 0321785045
ISBN 13: 978-0-32178-504-6

Chapter 9 - Review: 96

Answer

$A=1059.85$ dollars

Work Step by Step

We are given the formula $A=Pe^{rt}$ for solving interest problems (where A is the amount accrued, P is the principal amount invested, r is the rate of interest, and t is time in years). In this case, we are measuring the amount accrued when 940 dollars is invested over 3 years with a 4% interest rate. $A=940e^{.04(3)}=940e^{.12}=940\times1.1275=1059.85$ dollars
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