Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 9 - Section 9.2 - Exponential Functions and Models - Exercises - Page 645: 84

Answer

$A=4000(1.006)^{4t}$ ${{\$}} 4844$

Work Step by Step

We want an exponential model for the amount, $A=Db^{t}$ At Nov 2010, we take $t=0$ years, and the deposit is $D=4000$ The interest presents a quarterly increase by the factor $b=1+0.0024/4$ We have 4 quarters per year, so $A=4000(1+0.0024/4)^{4t}$ $A=4000(1.006)^{4t}$ In eight years time, $t=8$, and $A=4000(1.006)^{4\cdot 8}\approx 4843.9022932$
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