Homework: 7.1 hw Score: 0 of 1 pt
6 of 9 (5 complete)
7.1.26
Suppose you deposit $2,000 in a savings account that pays interest at an annual rate of 5%. If no rioney is added or withdrawn from the account, answer the following questions.
a. How much will be in the account after 4 years?
b. How much will be in the account after 17 years?
c. How many years will it take for the account to contain $2,500?
d. How many years will it take for the account to contain $3,000?
a. After 4 years, the amount in the account will be $
(Do not round until the final answer. Then round to the nearest cent as needed.)

a. $ 2,431.01 = 4 years

b. $ 4,584.04  = 17 years

c. 4.57 years = $ 2,499.57

d. 8.3 year = $ 2,998.48

e.  $ 2,431.01 = 4 years

Step-by-step explanation:

Compound Interest Equation

A = P(1 + r/n)nt

Where:

A = Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

R = Annual Nominal Interest Rate in percent

r = Annual Nominal Interest Rate as a decimal

r = R/100

t = Time Involved in years, 0.5 years is calculated as 6 months, etc.

n = number of compounding periods per unit t; at the END of each period

f(x) = - 2/3x + 5; f(5/2)

substitute 5/2 in for x:

f(5/2) = -2/3(5/2) + 5

simplify the right side:

f(5/2) = -5/3 + 5

f(5/2) = 10/3

answer:

f(5/2) = 10/3

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