Application of exponential and logarithm functions. round to hundredth.

you deposit $1000 in a bank account. if the account pays 3.5% annual interest compounded quarterly,
a) find the balance after 3 years.
b) how many years are needed to make the balance $5000

a) $1110.20

b) 46.18 years

Step-by-step explanation:

We must apply the exponential formula for the calculation of annual compound interest problems

The formula is:

Where P is the profit after t years

is the initial investment

r is the interest rate.

So in this problem, we have the quarterly interest rate.

We want to find the balance after 3 years. If in a year there are 4 quarters, then in 3 years there are t = 12 quarters.

a) To find the balance we substitute , quarters,

b) We must calculate t necessary to make the balance of 5000

answer: the answer is 110