An amount of P dollars is deposited in an account paying an annual interest rate

Question

An amount of P dollars is deposited in an account paying an annual interest rate r (as a decimal) compounded n times per year. After t years, the amount of money in the account, in dollars, is given by the equation. Rachel deposited $ 1.000 at 2.8% annual interest, compounded monthly. How much does she have in her account after 6 years? An archaeologist can determine the approximate age of certain ancient specimens by measuring the amount of carbon-14, a radioactive substance, contained in the specimen. The formula used to determine the age of a specimen is A = .A, 2 where A is the amount of carbon-14 that a specimen contains. A, is the original amount of carbon-14, t is time, in years, and 5760 is the half-life of carbon-14. Determine the amount of carbon-14 (to the nearest tenth) that remains if the specimen originally contained 120 milligrams after 1, 500 years.

Explanation / Answer

18. P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year

P = 1000, r = 2.8/100 = 0.028, n = 12, t = 6

A = 1000(1+(0.028/12))12(6) = $1182.71

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