MATH 121 - Final Milestone. Questions and Answers. Rationales Provided. 24/25 Score.

MATH 121 - Final Milestone. Questions and Answers. Rationales Provided. 24/25 Score. Suppose $20,000 is deposited into an account paying 4.5% interest, compounded annually. How much money is in the account after four years if no withdrawals or additional deposits are made? $24,100.00 $24,350.52 $23,600.00 $23,850.37 RATIONALE This is the general equation for compounding interest, where is the principal balance, is the annual percentage rate (APR), is time (in years), and is the number of times per year interest is compounded. Use the information provided to plug in the values for each variable. In this case, the principal balance is , the APR is (remember to express the percentage as a decimal, ), the time is years, and it is compounded one time a year, so is . Next, evaluate the right side of the equation. 8/11/2020 Sophia :: Welcome Because the interest is compounded only once a year, the fraction and exponent are easy to simplify. Evaluate the addition in inside the parentheses. plus is equivalent to . Now, apply the exponent. to the power of is equal to . Finally, multiply this value by . The account will have a balance of $23,850.37. CONCEPT Compound Interest 2 Consider the function . Find the formula for the inverse function.