SOLUTION: Suppose you deposit $1000 earned from your summer job in a savings account that pays 4.8% interest compounded monthly. a. Write an exponetial funcation to model the amount of mo

Question 189373: Suppose you deposit $1000 earned from your summer job in a savings account that pays 4.8% interest compounded monthly.
a. Write an exponetial funcation to model the amount of money in your savings account.
b. How much will you have in your account after 1 yr? After 2yr?
Answer by feliz1965(151) (Show Source): You can put this solution on YOUR website!
P = the principal (the initial amount you borrow or deposit)
r = the annual rate of interest (percentage)
Then p = 1000 and r = 0.048
NOTE: I needed to change 4.8% to a decimal number and so, you now know where the decimal number 0.048 comes from.
Part a of this question tells us to write an exponential function to model the amount of money in your savings account. We need to write an exponential function NOT solve the question.
Let M = amount of money in your savings.
M = 1000(1 + (0.048/12)^12
Part b of this question tells us to find
how much will you have in your account after 1 yr FIRST and then After 2yr.
I will give you the formula and you can finish the question.
In the formula below, let n = number of years the amount is deposited or borrowed for.
A = P(1 + r)^n
Now, first replace n with 1 representing the first year. Simplify to find the value of M.
Afterward, let n = 2 and do the same thing again to find the value of M.
Keep in mind that M = amount of money in your savings.
Can you take it from here?
use your scientific calculator.

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