Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2 0 2 1 , Ally Bank was offering 7 . 2 % interest on a CD ( certificate of deposit ) , with

In 2021, Ally Bank was offering 7.2% interest on a CD (certificate of deposit), with the interest compounded quarterly.
a. Find the associated exponential model for the value of a $8,000 investment after t years.
b. Rounding your answer to the nearest dollar, how much would a deposit of $8,000 in 2021 be worth in 2030?
c. Use logarithms to determine how long (rounding your answer to the nearest year) it would take for the $8,000 investment to be worth $20,000.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance With Monte Carlo

Authors: Ronald W. Shonkwiler

2013th Edition

146148510X, 978-1461485100

More Books

Students also viewed these Finance questions

Question

Discuss the importance of workforce planning.

Answered: 1 week ago

Question

Differentiate between a mission statement and a vision statement.

Answered: 1 week ago