(Solved): A bank features a savings account that has an annual percentage rate of r=3.3% with interest compoun ...
A bank features a savings account that has an annual percentage rate of
r=3.3%with interest compounded quarterly. Shante deposits
$9,500into the account. The account balance can be modeled by the exponential formula
A(t)=a(1+(r)/(k))^(kt), where
Ais account value after
tyears,
ais the principal (starting amount),
ris the annual percentage rate,
kis the number of times each year that the interest is compounded. (A) What values should be used for
a,r, and
k?
a=
?
0^(8)
?os,
k=1
?
0^(s)(B) How much money will Shante have in the account in 10 years? Answer
=$
q,Round answer to the nearest penny. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year).
APY=
?
%. Round answer to 3 decimal places.
