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21 August, 15:24

Suppose that $14,000 is invested in a savings account paying 5.2% interest per year.

(a) Write the formula for the amount A in the account after t years if interest is compounded monthly.

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  1. 21 August, 15:35
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    A=P (1+R%) ^n

    P=$14000, R=5.2%, t=t/12

    hence

    A=14000 (1+5.2/100) ^ (t/12)

    =14000 (1.052) ^t/12
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