Miles invested $2400 into a retirement account that earns 1.8% interest compounded bimonthly. Write a function to model this situation, then

Question

Miles invested $2400 into a retirement account that earns 1.8% interest compounded bimonthly. Write a function to model this situation, then
find the balance of the account after 25 years.

in progress 0
Josephine 2 weeks 2021-09-14T01:02:49+00:00 1 Answer 0

Answers ( )

    0
    2021-09-14T01:04:28+00:00

    Answer:

    (a)A(n)=P(1+\frac{r}{24})^{24n}

    (b)$3763.31

    Step-by-step explanation:

    When a Principal, P is invested at an annual rate r, for a period of k times over n years, the Amount, A(t) after n years is given by the model:

    A(n)=P(1+\frac{r}{k})^{nk}

    In this case:

    r=1.8%

    Since it is compounded bimonthly, k=2X12=24

    Therefore:

    A(n)=P(1+\frac{r}{24})^{24n}

    For P=$2400, and n=25 years

    A(25)=2400(1+\frac{0.018}{24})^{24*25}\\A(25)=\$3763.31

    The balance in the account after 25 years is $3763.31.

Leave an answer

45:7+7-4:2-5:5*4+35:2 =? ( )