Question

vanessa invested $2,500 into an account that will increase in value by 3.5% each year. Write an exponential function to model this situation,then find the value of the investment after 20 years​

Answer 1

Answer: (i) A = 2500 ($(1.035)^{n}$

(ii) A =$ 4,974.47

Step-by-step explanation:'

The exponential function is given as :

A = P$(1+r)^{n}$

Where :

A = amount

P = principal

r = rate %

n = number of years

substituting , the exponential function to model the situation becomes

A = 2500 ($(1.035)^{n}$

(ii) when n = 20 , the Amount becomes

A = 2500($(1.035)^{20}$

A =$ 4,974.47