Sign In Sign Up Ask an AI advisor
ellieballinger9364
ellieballinger9364
18.05.2021 • 
Mathematics

A bank offers a savings account which pays 3% interest per year. The amount of money in the account after t years is represented by the expression P(1+i/n)^nt, where P represents the initial amount of money invested, n represents the number of times per year the interest is compounded, i represents the interest rate, and t represents the number of years the money has been invested. Which statement describes what happens with the savings account when the interest is compounded monthly instead of yearly? Select two options

•The variable t will not change because it is a factor that is independent of n.

•The variable P will not change because it is a factor that is independent of n.

•The variable t will change because it is a factor that is multiplied by n.

•The variable P will change because it is multiplied by a factor that is dependent on n.

•The variable i will change because it is a factor that is dependent on n.

Solved
Show answers

Ask an AI advisor a question

I want advice