Question

Suppose that $100,000 is invested at 5% interest, compounded annuallyA = P(1+r)' a) Find a function for the amount in the account after t years b) Find the amount of money in the account after 8 years

Answer 1

Ans:- Given that,

principal value(P)=$100000

rate of interest(r)=5%

A=P(1+r)^t

(1) when time =t

A=100000*(1+5%)^t

=100000*(1+5/100)^t

=100000*(1+1/20)^t

=$100000*(21/20)^t

f(A)=$100000*(1.05)^t

(2) when t=8 years

A=100000*(21/20)⁸

=100000*(1.05)⁸

=100000*1.477455

=$147745.5443789

amount of money after 8 years=$147745.5443789