Find the equation of F. Answer A-D

Question

A person invests $4000 in an account at 4% interest compounded annually. Let V= f(t) be the value (in dollars) of the account after t years or any fraction thereof.

 

a. Find the equation of f

b. What is the V-intercept? What does it mean in this situation?

c. What will be the value of the investment in six years?

d. When will the value of the investment be 6000?

 

Use integers or decimals for any numbers in expressions.

Answer 1

a)   V=f(t)=4000(1+.04)^t=4000(1.04^t)

b)   The v- intercept is f(0)=4000.  The amount in the account at time zero.

c)   f(6)=4000(1.04)⁶=5061.276074=5061.28

d)  6000=4000(1.04^t)  so that 1.5=1.04^t or t(log1.04)=log1.5

t=log1.5/log1.04=10.33803507years