"y=a(1+r)^t I know this is a really basic question for this website, but I can't find it anywhere else. This is the question: ""If you deposit $3,750 in an account that pays 6% annual interest compounded monthly, what is the balance of the account after 11 years?"" The formula I'm using is y=a(1+r)t, with a being the initial amount, r being the rate in decimal form, and t is time relative to the rate, which makes y=3,750(1+.06)132 How do I solve for the ending amount (y)?"

Staffangz 2022-09-14 Answered
y = a ( 1 + r ) t
I know this is a really basic question for this website, but I can't find it anywhere else.
This is the question: "If you deposit $3,750 in an account that pays 6% annual interest compounded monthly, what is the balance of the account after 11 years?"
The formula I'm using is y = a ( 1 + r ) t , with a being the initial amount, r being the rate in decimal form, and t is time relative to the rate, which makes y = 3 , 750 ( 1 + .06 ) 132
How do I solve for the ending amount (y)?
You can still ask an expert for help

Want to know more about Exponential growth and decay?

Expert Community at Your Service

  • Live experts 24/7
  • Questions are typically answered in as fast as 30 minutes
  • Personalized clear answers
Learn more

Solve your problem for the price of one coffee

  • Available 24/7
  • Math expert for every subject
  • Pay only if we can solve it
Ask Question

Answers (1)

Jovany Newman
Answered 2022-09-15 Author has 10 answers
A better formula to use would be
y = a ( 1 + r k ) k t ,
where k is the number of times the interest is compounded per year. So, plugging in your information gives
y = 3750 ( 1 + .06 12 ) 132 = $ 7243.55

We have step-by-step solutions for your answer!

Expert Community at Your Service

  • Live experts 24/7
  • Questions are typically answered in as fast as 30 minutes
  • Personalized clear answers
Learn more

You might be interested in

asked 2022-01-21
Define thew term Exponential Growth and Decay?
asked 2022-09-29
Explanation of proof nedeed: Why is y = c y always a exponential growth/decay function?
I know, that a solution of y = c y is y = a e c t and it's clear how to calculate this.
I want to proof, that all solutions of a function describing a change of population, that is proprotional to the population, like y = c y is a function of exponential growth (or decay.
I found a proof:
Let g be an other solution, whilst g is not describing an exponential growth or decay. We show ( g e c t ) = 0 It's fine to me how they show it's zero. But where does ( g e c t ) come from and why are they using it here, what does it mean?
asked 2022-09-05
There's a cup of coffee made with boiling water standing at room where room temperature is 20ºC. If H(t) is the temperature of this cup of coffee at the time t, in minutes, explain what the differential equation says in everyday terms. What is the sign of k?
d h d t = k ( H 20 )
Then solve the differential equation for 90ºC in 2 minutes and how long it will take to cool to 60ºC
Observing d h d t = 0 we find that H=20 this means that the function stops changing at the room temperature H=20. As t is implied to be H = 20 + A e k t as t approaches infinity H=20.
asked 2021-06-29
Compare exponential growth and exponential decay.
asked 2021-09-20

Determine whether the function represents exponential growth or exponential decay. Then identify the percent rate of change. f(t)=200(43)t

asked 2021-05-05
Tell whether the function represents exponential growth or exponential decay. Explain.
y=(12)(1.01)x
asked 2020-11-07
For any elements a and to from a group and any integer n, prove that (a1ba)n=a1bna.

New questions