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.