How much money will you have if you started with $1200 and put it in an account that earned 7.3% every year for 10 years?
1 answer:
So an exponential equation is gonna be used for this problem. The formula for such is 
, in which the a variable is the initial value and the b variable is the growth/decay rate.
For this situation, 1200 is gonna be your a variable since you've started out with it. And as for your b variable, its gonna be 107.3%, or 1.073, since it's increasing.
Your equation should look like this:
and from here just plug in 10 into the x variable and solve.
Multiply (1.073)^10 (don't round answers until the end), and take that answer and multiply it with 1200, your answer should be $2427.61.
For this situation, 1200 is gonna be your a variable since you've started out with it. And as for your b variable, its gonna be 107.3%, or 1.073, since it's increasing.
Your equation should look like this:
Multiply (1.073)^10 (don't round answers until the end), and take that answer and multiply it with 1200, your answer should be $2427.61.
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