Question

Holly deposited $10,000 in an investment account. After 6 years the account is worth approximately $13,400. Which formula represents the value of the account after t years?

Answer 1

Answer: C

Step-by-step explanation: The solution is V = 10,000(1.05)t. Plugging 6 in for t yields a value of approximately $13,400.

Answer 2

For this question you need to use the formula: y=p(1+r)^t. P is the principle, or the starting amount, $10,000, r is the rate of growth or decay, and t is the number of years. y=10,000(1.05)^x