<PRE><B>Question 251431</B>
A certain bank pays 1% compound interest for their savings account holders. If Nick deposits $10000 in that bank. (refer page 707 in the text book) (40 points) Formula = A= P (1 + r)^t 
a. Estimate how much money will be in his account after 25 years using your formula. Assume there will not be any deposits or withdrawals during that 25 year period.
A(25) = 10,000(1+0.01)^25
A(25) = 10,000(1.01)^25
A(25) = 10,000*1.2824
A(25) = 12,824.00
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b. Estimate how long it will take to double the total amount (i. e. the total is $20000) in Nick’s account.
20,000 = 10,000(1.01)^t
2 = 1.01^t
t*log(1.01) = log(2)
t = log(2)/log(1.01)
t = 69.66 years
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c.Estimate the total amount in Nick’s account after one year.
A(1) = 10,000(1.01)^1
A(1) = 10,100
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Cheers,
Stan H.
</PRE>