Exponential Functions

Question

A bank features a savings account that has an annual percentage rate of r=4.3% with interest compounded quarterly. David deposits $9,500 into the account. 

The account balance can be modeled by the exponential formula S(t)=P(1+r/n)^nt, where S is the future value, P is the present value, r is the annual percentage rate written as a decimal, n is the number of times each year that the interest is compounded, and tt is the time in years. 

(A) What values should be used for P, r, and n? 

P= r= n=

(B) How much money will David have in the account in 77 years? 

Round answer to the nearest penny.

Answer 1

What is the issue? All of the information is presented to you.

P = 9500

r = 0.043

n = 4

S(t) = 9500(1 + 0.043/4)⁴⁽⁷⁷⁾ = your answer