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anonymous
 one year ago
The formula to find the amount in an account, A, that has an interest rate, r, that compounds n times per year and has a starting balance of P after t years is .
If the interest is compounded yearly, then n = 1 and the interest rate, r, represents the annual interest. When the interest is compounded monthly, then n = 12 but r is still the annual interest.
a. If you were given the equation , how often is the interest compounded?
anonymous
 one year ago
The formula to find the amount in an account, A, that has an interest rate, r, that compounds n times per year and has a starting balance of P after t years is . If the interest is compounded yearly, then n = 1 and the interest rate, r, represents the annual interest. When the interest is compounded monthly, then n = 12 but r is still the annual interest. a. If you were given the equation , how often is the interest compounded?

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kropot72
 one year ago
Best ResponseYou've already chosen the best response.1\[\large A=P(1+\frac{r}{n})^{nt}\] where r is expressed as a decimal.

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1a) The question states that the interest rate compounds n times per year.

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1@Kaelyn78 Are you there?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0b. If you were given the equation , what would the annual interest rate be?

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1As the question states "the interest rate, r, represents the annual interest".

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1"If you were given the equation , what would the annual interest rate be?" The annual interest rate is r in the equation that I posted. r must be expressed as a decimal. If the annual interest rate was 6%, r would be expressed as 0.06.

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1@Kaelyn78 Is it any clearer now?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0yes that makes more sense

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0c. What would need to change about the equation in part b for it to represent an account that is compounded monthly?

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1If an account is compounded monthly, that means it compounds 12 times per year. Which variable in the equation represents the number of times in a year that the account compounds?

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1The answer is in the question.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0you need to change r?

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1Not really. The variables are A, r, n, P and t. Which one does the question use for "times per year"?

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1The question states "When the interest is compounded monthly, then n = 12 but r is still the annual interest."

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0so you need to change n?

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1Therefore you would replace n by 12 in the equation to represent an account that is compounded monthly.

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1Giving: \[\large A=P(1+\frac{r}{12})^{12t}\]

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0d. Use the properties of exponents to rewrite the equation given in part b so that it represents an account that is compounded monthly.

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1The required equation was posted above.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0e. What would be the approximate monthly interest rate that is equivalent to the annual interest rate represented in the equation given in part b?

kropot72
 one year ago
Best ResponseYou've already chosen the best response.1The approximate monthly interest rate that is equivalent to the annual interest rate represented in the equation given in part b is r/12.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0thank you for all your help
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