Question
Lydia has invested a small sum of money into an investment account offering a fixed APR. After 1 year, the value of her account is
Lydia has invested a small sum of money into an investment account offering a fixed APR. After 1 year, the value of her account is $3, 850. After two years, the value has increased to 4, 235.
(a) (6 pts) Find a function A(t) modelling the value of Lydias account after t years. (b) (3 pts) About how long will it take Lydia to earn $5, 000? You may round your answer to 2 decimal places. (c) (2 pts) If the interest in Lydias account is being compounded annually, what is the APR? Write your answer as a percentage. (d) (4 pts) If instead the interest is being compounded continuously, what is the APR? Write your answer as a percentage, you may round to 1 decimal place.
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