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Answer:
A(m) = 10000×1.10^m; 10% monthly interest
Step-by-step explanation:
If t is the time in years and m is the corresponding time in months, then we have ...
m = 12t
t = m/12
So, the balance is ...
A(t) = 10000×3.138^t
A(m) = 10000×3.138^(m/12) = 10000×(3.138^(1/12))^m
A(m) = 10000×1.10^m
The monthly interest rate is 10%.
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The monthly growth factor 1.10 is 1 more than the monthly growth rate.
growth rate = growth factor -1 = 1.10 -1 = 0.10 = 10%.
