Precalculus (6th Edition) Blitzer

Published by Pearson
ISBN 10: 0-13446-914-3
ISBN 13: 978-0-13446-914-0

Chapter 3 - Section 3.1 - Exponential Functions - Exercise Set - Page 451: 81

Answer

a. $A_1=10000(1+\frac{0.05}{4})^{4t}$. $A_2=10000(1+\frac{0.045}{12})^{12t}$. b. the $5\%$ account (red curve).
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Work Step by Step

a. For the $5\%$ account, we have $r=0.05, n=4$ and $A_1=10000(1+\frac{0.05}{4})^{4t}$. For the $4.5\%$ account, we have $r=0.045, n=12$ and $A_2=10000(1+\frac{0.045}{12})^{12t}$. b. Graph both functions; we can see that the $5\%$ account (red curve) rises faster and thus offers a better return.
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