An investment of 12 500 increases by 13 each month a Find t

An investment of $12, 500 increases by 1.3 % each month. a. Find the following: i. Initial value: ii. 1-month growth factor: iii. 1-month percent change: % b. Define a function f that determines the value of the investment given t, the number of months since the initial investment was made: c. Using function notation, represent the value of the investment 3 months after the money was invested, then find this value. (Your answer should be of the form f(10) = 14223.43)

Solution

Investement = $ 12500 and increase by 1.3 % each month

a)   i) Intial value : = 12500

ii) i month grwoth factor = 1+x = 1+ 0.013 = 1.013

iii) 1 month percent change = 1.3%

b ) f(t) = 12500(1.013)^t

c) f(3) = 12500(1.013)^3 = $ 12993.86