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You decide to invest $10,000 in an account where the interest compounds annually. Create an exponential function to represent how much money you will have after 20 years if the money grows at a rate of 7.5 percent

You decide to invest 10000 in an account where the interest compounds annually Create an exponential function to represent how much money you will have after 20 class=

Respuesta :

Apply the compound interest formula:

• A= P (1 + r/n)^nt

Where:

A = future value

P = Principal investment = $10,000

r = interest rate in decimal form = 7.5 /100 = 0.075

n= number of compounding periods per unit t = 1 (anually)

t= years = 20

Replacing:

A = 10,000 ( 1+ 0.075 )^20

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