Josh wants to save for his college education. He plans to make equal monthly deposits for four years. The savings account he has chosen will pay annual interest of 2% cornpounded monthly. Unit 4.1.1 → 4.1.4 ( ((1+r) - a. Use the future value formula F = I(1 + r)' + A r to write an algebraic rule that expresses the balance at the end of four years as a function of the amount Josh deposits each month. (initial deposit is $0.00) 48 48 F(48 months) = 0(1+.02) + A((1+.02) - 1) b. To which function family does this function belong? Explain your choice. then c. Josh wants to have $5,000 at the end of the four years. Write an equation that could be used to determine how much Josh needs to save each month, solve the equation. (find the monthly deposit needed if you start with #0)

Josh wants to save for his college education. He plans to make equal monthly deposits for four years. The savings account he has chosen will pay annual interest of 2% cornpounded monthly. Unit 4.1.1 → 4.1.4 ( ((1+r) - a. Use the future value formula F = I(1 + r)' + A r to write an algebraic rule that expresses the balance at the end of four years as a function of the amount Josh deposits each month. (initial deposit is $0.00) 48 48 F(48 months) = 0(1+.02) + A((1+.02) - 1) b. To which function family does this function belong? Explain your choice. then c. Josh wants to have $5,000 at the end of the four years. Write an equation that could be used to determine how much Josh needs to save each month, solve the equation. (find the monthly deposit needed if you start with #0)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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