Where the variables have the following meaning:š“ = Amount accumulatedĀ š = Principalš = interested rateĀ š = compounding per periodĀ š” = number of periodsĀ Find the value of the function when š=350, š=7.5%, š=12, and š”=8.(Round your answer to the nearest whole number.)
Question
Where the variables have the following meaning:š“ = Amount accumulatedĀ š = Principalš = interested rateĀ š = compounding per periodĀ š” = number of periodsĀ Find the value of the function when š=350, š=7.5%, š=12, and š”=8.(Round your answer to the nearest whole number.)
Solution
The function you're referring to is the formula for compound interest, which is:
A = P(1 + r/n)^(nt)
Given the values P=350, r=7.5% (or 0.075 as a decimal), n=12, and t=8, we can substitute these into the formula:
A = 350(1 + 0.075/12)^(12*8)
Now, let's calculate it step by step:
- Calculate the value of r/n: 0.075/12 = 0.00625
- Add 1 to the above result: 1 + 0.00625 = 1.00625
- Calculate the value of nt: 12*8 = 96
- Raise the result from step 2 to the power of the result from step 3: (1.00625)^96 ā 1.8163
- Multiply the result from step 4 by the principal amount (P): 350 * 1.8163 ā 636.205
So, the value of the function when P=350, r=7.5%, n=12, and t=8 is approximately 636. If we round this to the nearest whole number, we get 636.
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