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22 July, 22:08

Tobie Invest $25 in a bank account where the interest is compounded at 4% every year. He makes no withdrawals or deposits. the formula for compound interest is A (t) = P (1+i) ^t

Part A : what are the principal and the interest rate?

Part B : write a function that represents tobie's account balance after t years

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Answers (1)
  1. 23 July, 01:48
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    The principal is $25 and the rate is 4%.

    So after t years: A (t) = 25 (1.04) ^t
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