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wariber [46]
3 years ago
10

Vanessa invested 2500 into an account that will increase in value by 3.5% each year. Find the value of the investment after 20 y

ears
Mathematics
2 answers:
alexgriva [62]3 years ago
6 0

Answer:

4974.47

Step-by-step explanation:

Vanessa invested 2500 into an account that will increase in value by 3.5% each year. Find the value of the investment after 20 years

This is an exponential function. To solve this we will use the equation f(x) = a * (b)^x. Based on the given information we can plug in the values to find f(x). f(x) = (2500)(1+0.035)^20. This equals to 4974.47215866. Due to there being no more than past the hundreths when dealing with money, this further simplifies to 4974.47.

Effectus [21]3 years ago
3 0

Answer:

4974.47

Step-by-step explanation:

First, let's convert the percent into a decimal

3.5% / 100 = 0.035

Now, let's use that to find the percent it changes over 20 years.

(1 + 0.035) ^ 20

(1.035) ^ 20

1.9898

Now, we multiply this number by 2,500 to see the value of the investment after 20 years

1.9898 x 2500 = 4974.47

If it increases by 3.5% each year, the investment will be worth $4974.47 after 20 years.

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