Question

A savings account earns 15% interest annually. What is the balance after 8 years in the savings account when the initial deposit is 7500?

Answer 1

The balance after 8 years is $22,942.67

What is the balance after 8 years?

We know that the savings account earns 15% annually, and the initial deposit is $7500, then the balance as a function of time in years is:

B = $7500*(1 + 15%/100%)^t

B = $7500*(1.15)^t

The balance after 8 years is what we get when we evaluate the above function in t = 8, so we get:

B = $7500*(1.15)^8 = $22,942.67

So the correct option is the last one.

If you want to learn more about exponentials:

brainly.com/question/2456547

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