Matt deposited $400 into an account that compounds interest daily at a rate of 1.095%. At the end of a certain period of time, he had a balance in the account of $417.91.a. Write an expression for the account term t but do not evaluate it.b. Using the expression you determined in part a and the change-of-base formula with common

Chapter 2, Application 2.9 #9

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Matt deposited $400 into an account that compounds interest daily at a rate of 1.095%. At the end of a certain period of time, he had a balance in the account of $417.91.
a. Write an expression for the account term t but do not evaluate it.
b. Using the expression you determined in part a and the change-of-base formula with common logarithms, find the value of the account term t.
c. Using the expression you determined in part a and the change-of-base formula with natural logarithms, find the value of the account term t.
d. What do you notice about the values of t found in parts b and c? Explain your observations. The results are the same because the change-of-base formula works regardless of the base chosen.

Related Book For answer-question

Financial Algebra Advanced Algebra With Financial Applications

2nd Edition

Authors: Robert Gerver, Richard J. Sgroi

ISBN: 9781337271790