You deposit money in two baks, bank first and bank second and you let the deposi

Question

You deposit money in two baks, bank first and bank second and you let the deposited money collect interest. let t denote the time (in years) since the initial deposit. let f=f(t) be the balance in bank first and let S=S(t) be the balance in Bank Second. Both F and S are exponential functions.

The formula for Bank Firt is F=150(1.06)t

a) What was your initial deposit in Bank First?

b) What is the yearly percentage growth rate?

c) What is the monthly percentage growth rate?

Your initial deposit in Bank Second was $100. After one year the balance was $105.

d) What is the yearly growth Factor at Bank Second?

e) Find an exponential equation for the growth of the deposit at Bank Second.

Any work is helpful as well, thank you so much in advance!! :)

Explanation / Answer

The formula for Bank Firt is F=150(1.06)t

a) What was your initial deposit in Bank First?

---150

b) What is the yearly percentage growth rate?

% growth rate = 1.06 -1 = 0.06 = 6%

c) What is the monthly percentage growth rate?

%monthly percentage growth rate F=150(1.06)t = F=150(1.06)^(m/12)   if m is no. of months

So, % ,monthyly growth rate = 1.06^(1/12) -1 = 1.0048 -1 = 0.0048 = 0.48%

Your initial deposit in Bank Second was $100. After one year the balance was $105.

d) What is the yearly growth Factor at Bank Second?

yearly growth rate =(105-100)/100 = 0.05 = 5%

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