Question

To compare investments, analysts convert monthly, quarterly, semiannual rates to annual rates. If an investment of $100,000 is invested at 4.5% twice a year, compounded semiannually, the growth can be modeled by the equation A(t) = 100,000(1.045)2t. What is the equivalent annual growth rate for this investment (rounded to the nearest hundredth of a percent) and what is it worth (rounded to the nearest thousand dollar) after 15 years?

Answer 1

@563blackghost

Answer 2

I believe t represents years so we would input 15 where t is and get the equation....
\[100,000(1.045)2(15)\]
now all we do now is use PEMDAS to solve the problem
\[100,000(1.045)2(15)\]
\[100,000(1.045)(30)\]
\[100,000(31.35)\]
Are you able to get the last simplification?

Answer 3

No I tried but man I just don't get it

Answer 4

Well for this problem it shows the equation to find the annual growth rate so in this one we would simply input the years where t is to find out what the annualgrowth is in 15 years.... but the product is $3,135,000

Answer 5

O to simplefy that number how would we get the answer?

Answer 6

We would multiply...