Question

You deposit $200 into the stock market. Every year your stock market account increases by 12 %. You leave the money in the account for 5 years. Fill in the values for the exponential growth formula. Round your money answers to the nearest dollar.

Answer 1

Answer:

Therefore after 5 year the balance in the stock market is $ 352.47.

Explanation:

Exponential growth formula :

$y=a(1+r)^t$

y= Final amount

a= initial amount

r= rate of growth

t= time

Given that,

The deposit amount = $200

Rate of interest (r)=12%=0.12

Time (t)=5 years

$\therefore y=200(1+0.12)^5$

      =$352.47

Therefore after 5 year the balance in the stock market is $ 352.47.