Question

DSuppose $39oo is deposited in a savings account that increases exponentially.Detamine thě APv if the acount increases to $t020 in 4 years. Ass ume tne interest Vale remains Constant and no additional deposits or Withdrawals are made. (a.) Let pbe the APY. Note tnat if tme inital balaqe is yo, ne year later tne balane is %more. P- 3 (Tpe an opresion us ing M asthe varable.) (b0rehe exat alue of K to find fne APY The APY is %o Do notround until ine final answer.Thun vound to Places as needed.) 2 two decima

Answer 1

Answer to Question 1 Principle amount (P) $ 3900 Time (T) 4 years Maturity Value (A) = $ 7020 Let APY be r%. Hence, P*(e") A Or, 3900*(e4) = 7020 Or, e4r 7020/3900 Or, e4r 1.80 Or, Loge1.80 = 4r - Or, 4r 0.5879 Or, r 14.70% Hence, APY is 14.70%