Precalculus: Concepts Through Functions, A Unit Circle Approach to Trigonometry (3rd Edition)

Published by Pearson
ISBN 10: 0-32193-104-1
ISBN 13: 978-0-32193-104-7

Chapter 11 - Sequences; Induction; the Binomial Theorem - Section 11.3 Geometric Sequences; Geometric Series - 11.3 Assess Your Understanding - Page 844: 1


$ \$1082.43$

Work Step by Step

Consider the Compound Interest Formula: $A=P\cdot(1+\dfrac{r}{n})^{n\cdot t} (1)$ Where $P$ is the principal invested at an annual interest rate $r$, $n$ represents the number of times the interest is compounded annually, and $A$ is the amount after $t$ years. Here we have: $t=2 \ years ; \\ r=4\%=0.04 \\ P=\$ 1000$ and $n=2, t=2$ Plug the above data into formula (1) to obtain: $A=1000 (1+\dfrac{0.04}{2})^{(2)(2)}= \$1082.43$
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