Question

Refer to the previous question.Approximately how much money would be in your account after the third year?(Assume that you do not make any additional deposits or withdrawals.)

Answer 1

The amount of money in the account after t years is given by the function

$f(t)=1000\cdot(1.12)^t$

We want to evaluate how much money would be in your account after the third year, to do it we must put t = 3 in our function, then

$\begin{gathered} f(t)=1000\cdot(1.12)^t \\ \\ f(3)=1000\cdot(1.12)^3 \\ \\ f(3)=1000\cdot1.404928 \\ \\ f(3)=1404.928 \end{gathered}$

And we can approximate to

$\ 1404.93$