SOLUTION: A bank account with principal p earns interest rate r (expressed as a decimal) compounded annually. What is the ratio of the balance after 3 year to the balance after 1 year? Wri
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Question 869067: A bank account with principal p earns interest rate r (expressed as a decimal) compounded annually. What is the ratio of the balance after 3 year to the balance after 1 year? Write r as a decimal.
Answer by josgarithmetic(39617) (Show Source): You can put this solution on YOUR website!
Balance is for time t in years.
t=1, .
t=3, .
You would expect to use r as a decimal as you say.
The ratio of balances is .
Do you have a known value of the ratio?
If you know for some constant, k, that , then you have
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