Question

Annie invests $400 in a bank that offers 5.5% simple annual interest after 6 years her investment will increase by blank dollars

Answer 1

Answer:

Her investment will increase by 551.54 dollars

Step-by-step explanation:

So we know that the exponential function formula is f(x)=a(1+r)^x

So knowing that we can input values

So now we have f(x)=400(1+0.055)^6

Since it is annual we will only have the interest yearly so that changes are equation to look like this f(x)=400(1+0.055/1)^6

So next we have to add 1 and 0.055 which is 1.055

So we input that into the equation so now we have f(x)=400(1.055/1)^6

Now we have to do (1.055/1) to the power of six, so we get 1.37884280676

Now we have to 1.37884280676 times 400,  which would be 551.537122705.

Assuming they want to the nearest 100th it would be 551.54

So the answer is 551.54 dollars

Hopefully, that helped. If I made any mistake or I am incorrect feel free to correct me. :)