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Question 896630: question 1: you deposit $1200 at 6% compound interest annually. Find the balance in your account at the end of the given time period:
a) 1 year
b) 10 years
question 2: a piece of machinery costs $240,000. Its value decreases at a rate of 12% per year. Write a model to represent the value of the machinery after an "x" amount of years.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! question 1: you deposit $1200 at 6% compound interest annually. Find the balance in your account at the end of the given time period:
Compound Interest Formula::
A(t) = P(1+(r/n))^(nt)
a) 1 year
A(1) = 1200(1+0.06)^(1*1) = 1200*1.06 = $1272
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b) 10 years
A(10) = 1200(1+0.06)^(1*10) = 1200*1.06^10 = $2149.02
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question 2: a piece of machinery costs $240,000. Its value decreases at a rate of 12% per year. Write a model to represent the value of the machinery after an "x" amount of years.
A(x) = 240*0.88^x
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Cheers,
Stan H.
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