College Algebra (10th Edition)

Published by Pearson
ISBN 10: 0321979478
ISBN 13: 978-0-32197-947-6

Chapter 9 - Section 9.3 - Geometric Sequences; Geometric Series - 9.3 Assess Your Understanding - Page 664: 2

Answer

${{\$}} 9513.28$

Work Step by Step

THEOREM: Compound interest Formula (Section 6-7) The amount $A$ after $t$ years due to a principal $P$ invested at an annual interest rate $r,$ expressed as a decimal, compounded $n$ times per year is $A=P\displaystyle \cdot\left(1+\frac{r}{n}\right)^{nt}$ $A=10,000$ $P=?,$ $r=0.05$ $n=12$ $t=1$ $10000=P\displaystyle \cdot\left(1+\frac{0.05}{12}\right)^{12}$ $P=\displaystyle \frac{10000}{\left(1+\frac{0.05}{12}\right)^{12}}\approx 9513.28241$
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