Answer:
[tex]A=1000(1+\frac{0.023}{12})^{12t}[/tex]
Rate of interest (r) = 0.19% monthly
Step-by-step explanation:
Given: The total amount of money in a saving account after t years.
[tex]A=1000(1.023)^t[/tex]
Formula:
[tex]A=P(1+r)^t[/tex]
Now we compare this formula with with given model.
P=1000
Rate of interest annually (r) = 0.023
Time = t
We need to change into monthly interest
New rate will divide by 12
New time will multiply by 12
[tex]r=\frac{0.023}{12}=0.0019[/tex]
[tex]t=12\times t =12t[/tex]
Function for monthly rate
[tex]A=1000(1+\frac{0.023}{12})^{12t}[/tex]
Rate of interest (r) = 0.19% monthly
[tex]\text{Thus, Function Monthly interest rate: }A=1000(1+\frac{0.023}{12})^{12t}\text{ and Monthly Interest rate }= 0.19\%[/tex]
