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Margaret [11]
2 years ago
14

Compound interest . A student get a grant of $10000 a year assuming her grant is increased by 7% each year what will her grant b

e in four years time
Mathematics
1 answer:
Klio2033 [76]2 years ago
3 0

Answer:

Her grant in four years time will be of $13108.

Step-by-step explanation:

Exponential equation:

An exponential equation has the following format:

A(t) = A(0)(1+r)^t

In which A(0) is the initial value and r is the growth rate, as a decimal.

A student get a grant of $10000 a year assuming her grant is increased by 7% each year

This means that A(0) = 10000, r = 0.07

So

A(t) = A(0)(1+r)^t

A(t) = 10000(1+0.07)^t

A(t) = 10000(1.07)^t

What will her grant be in four years time?

This is A(4). So

A(t) = 10000(1.07)^t

A(4) = 10000(1.07)^4 = 13108

Her grant in four years time will be of $13108.

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<h2>Step-by-step explanation:</h2>

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