Question

Initial Knowledge Check

Answer 1

Answer:

Step-by-step explanation:

We first need to figure out what the equation is for this set of circumstances before we can answer any questions. We will use the equation

$A(t)=P(1+r)^t$ which is just another form of an exponential equation where

(1 + r) is the growth rate, P is the initial investment, and t is the time in years. We will fill in the values we know first to create the equation:

$A(t)=4000(1+.11)^t$ which simplifies to

$A(t)=4000(1.11)^t$

Now we'll just sub in a 1 for t and solve, then a 2 for t and solve.

When t = 1:

A(t) = 4000(1.11) so

A(t) = 4440

When t = 2:

$A(t)=4000(1.11)^2$ which simplifies to

A(t) = 4000(1.2321) so

A(t) = 4928.40