suppose that 58,000 is invested at 5 1/2% interest, compounded quarterly

Question

suppose that 58,000 is invested at 5 1/2% interest, compounded quarterly

a) find the function for the amount of to which the investment grows after t years

b) graph the function

c)find the amount of money in the account at t=0, 4, 6, 10 years

d) when will the amount of money in the account reach 300,000

Answer 1

a) A=58000(1+.055/4)^4t= 58000(1.01375)^4t

c) at t= 0, A = 58000

at t=2, A=58000(1.01375)^8

at t = 4, A = 58000(1.01375)^16

d) 300,000 = 58,000(1.01375)^4t