Join IDNLearn.com today and start getting the answers you've been searching for. Ask your questions and receive detailed and reliable answers from our experienced and knowledgeable community members.
Sagot :
Sure, let's walk through the problem step by step.
### Part (a): Finding the Function
To determine the growth of an investment with compounding interest, we use the compound interest formula:
[tex]\[ A(t) = P \left(1 + \frac{r}{n}\right)^{nt} \][/tex]
where:
- [tex]\( A(t) \)[/tex] is the amount of money accumulated after [tex]\( t \)[/tex] years, including interest.
- [tex]\( P \)[/tex] is the principal amount (the initial amount of money).
- [tex]\( r \)[/tex] is the annual interest rate (decimal).
- [tex]\( n \)[/tex] is the number of times that interest is compounded per year.
- [tex]\( t \)[/tex] is the time the money is invested for in years.
Given:
- The principal amount [tex]\( P = 68,000 \)[/tex] dollars.
- The annual interest rate [tex]\( r = 3.5\% = 3.5 / 100 = 0.035 \)[/tex] (in decimal).
- The interest is compounded quarterly, which means [tex]\( n = 4 \)[/tex].
Plugging these values into the formula, we get:
[tex]\[ A(t) = 68000 \left(1 + \frac{0.035}{4}\right)^{4t} \][/tex]
[tex]\[ A(t) = 68000 \left(1 + 0.00875\right)^{4t} \][/tex]
[tex]\[ A(t) = 68000 (1.00875)^{4t} \][/tex]
### Part (b): Calculating the Amount after different years
Using the function [tex]\( A(t) = 68000 (1.00875)^{4t} \)[/tex], we will find the amount of money after [tex]\( t = 0, 4, 5, \)[/tex] and [tex]\( 10 \)[/tex] years.
1. When [tex]\( t = 0 \)[/tex] years:
[tex]\[ A(0) = 68000 (1.00875)^{4 \cdot 0} = 68000 (1.00875)^0 = 68000 \times 1 = 68000.0 \][/tex]
2. When [tex]\( t = 4 \)[/tex] years:
[tex]\[ A(4) = 68000 (1.00875)^{4 \times 4} = 68000 (1.00875)^{16} \approx 78171.00156549881 \][/tex]
3. When [tex]\( t = 5 \)[/tex] years:
[tex]\[ A(5) = 68000 (1.00875)^{4 \times 5} = 68000 (1.00875)^{20} \approx 80943.10635621526 \][/tex]
4. When [tex]\( t = 10 \)[/tex] years:
[tex]\[ A(10) = 68000 (1.00875)^{4 \times 10} = 68000 (1.00875)^{40} \approx 96349.80097931727 \][/tex]
So, the amounts are:
- After [tex]\( 0 \)[/tex] years: \[tex]$68,000.00 - After \( 4 \) years: \$[/tex]78,171.00
- After [tex]\( 5 \)[/tex] years: \[tex]$80,943.11 - After \( 10 \) years: \$[/tex]96,349.80
### Part (a): Finding the Function
To determine the growth of an investment with compounding interest, we use the compound interest formula:
[tex]\[ A(t) = P \left(1 + \frac{r}{n}\right)^{nt} \][/tex]
where:
- [tex]\( A(t) \)[/tex] is the amount of money accumulated after [tex]\( t \)[/tex] years, including interest.
- [tex]\( P \)[/tex] is the principal amount (the initial amount of money).
- [tex]\( r \)[/tex] is the annual interest rate (decimal).
- [tex]\( n \)[/tex] is the number of times that interest is compounded per year.
- [tex]\( t \)[/tex] is the time the money is invested for in years.
Given:
- The principal amount [tex]\( P = 68,000 \)[/tex] dollars.
- The annual interest rate [tex]\( r = 3.5\% = 3.5 / 100 = 0.035 \)[/tex] (in decimal).
- The interest is compounded quarterly, which means [tex]\( n = 4 \)[/tex].
Plugging these values into the formula, we get:
[tex]\[ A(t) = 68000 \left(1 + \frac{0.035}{4}\right)^{4t} \][/tex]
[tex]\[ A(t) = 68000 \left(1 + 0.00875\right)^{4t} \][/tex]
[tex]\[ A(t) = 68000 (1.00875)^{4t} \][/tex]
### Part (b): Calculating the Amount after different years
Using the function [tex]\( A(t) = 68000 (1.00875)^{4t} \)[/tex], we will find the amount of money after [tex]\( t = 0, 4, 5, \)[/tex] and [tex]\( 10 \)[/tex] years.
1. When [tex]\( t = 0 \)[/tex] years:
[tex]\[ A(0) = 68000 (1.00875)^{4 \cdot 0} = 68000 (1.00875)^0 = 68000 \times 1 = 68000.0 \][/tex]
2. When [tex]\( t = 4 \)[/tex] years:
[tex]\[ A(4) = 68000 (1.00875)^{4 \times 4} = 68000 (1.00875)^{16} \approx 78171.00156549881 \][/tex]
3. When [tex]\( t = 5 \)[/tex] years:
[tex]\[ A(5) = 68000 (1.00875)^{4 \times 5} = 68000 (1.00875)^{20} \approx 80943.10635621526 \][/tex]
4. When [tex]\( t = 10 \)[/tex] years:
[tex]\[ A(10) = 68000 (1.00875)^{4 \times 10} = 68000 (1.00875)^{40} \approx 96349.80097931727 \][/tex]
So, the amounts are:
- After [tex]\( 0 \)[/tex] years: \[tex]$68,000.00 - After \( 4 \) years: \$[/tex]78,171.00
- After [tex]\( 5 \)[/tex] years: \[tex]$80,943.11 - After \( 10 \) years: \$[/tex]96,349.80
Your participation means a lot to us. Keep sharing information and solutions. This community grows thanks to the amazing contributions from members like you. Thank you for visiting IDNLearn.com. We’re here to provide dependable answers, so visit us again soon.