1. Use the function described below to answer questions 1 - 4.

Yvonne invested $4,000 in a savings account which pays 3.5% interest compounded annually. Use the formula A = P (1 + r) t, where P is the principal, r is the interest rate, and t is the time in years.

What is the percent of increase as a decimal? Do not round.

2. Approximately, how much money will Yvonne have in 4 years? Round to the nearest cent.

3. Approximately, how much money will Yvonne have in 8 years? Round to the nearest cent.

4. Approximately, how many years will it take for Yvonne to double her money? Write the number of years only.

5. Alex buys a top of the line computer. He did not realize that the computer would lose value so fast. If his computer cost $1800.00 and it depreciates at a rate of 45% each year, in how many years will it be worth less than 1/3 of what he paid for it?

Question

Fiona Clark

7 February, 19:35

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Answers (1)

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Denisse · Answer 1

1. F=4000 (1+0.035) ^4=? 2. F=4000 (1+0.035) ^8=? 3. 3p=p (1+0.035) ^t=solve for t and use log