Consider the function y = 1.065(4), which represents thegrowth of capital in a bank account.

The annual interest is

___%, and the bank compounds the interest_____

The balance of the account will

grow____

The annual interest rate is 6.5%, and the bank compounds the interest annually. The balance of the account will grow exponentially over time.

The given function y = 1.065(4) represents the growth of capital in a bank account, where the initial balance is 4 and the growth rate is 6.5% per year. To calculate the annual interest rate, we can use the formula A = P(1 + r/n)^(nt), where A is the final amount, P is the initial principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years.

In this case, the final amount after one year is 4 * 1.065 = 4.26. Substituting the values in the formula, we get 4.26 = 4(1 + r/1)^(1), which simplifies to 1 + r = 1.065. Solving for r, we get r = 0.065 or 6.5%.

The bank compounds the interest annually, which means that the interest is added to the account balance at the end of each year. As the balance grows, the interest earned in the subsequent years will be higher. This results in exponential growth of the account balance over time. After n years, the account balance will be B = P(1 + r)^n, where P is the initial balance, r is the annual interest rate, and n is the number of years.

For example, after 5 years, the account balance will be B = 4(1 + 0.065)^5 = 5.39. After 10 years, the account balance will be B = 4(1 + 0.065)^10 = 7.27. As we can see, the account balance grows significantly over time due to the effect of compounding interest.

Learn more about interest rate here

brainly.com/question/25720319

#SPJ11