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Ket [755]
3 years ago
13

Which equation would we use to figure out this problem? Rachael

Mathematics
1 answer:
Anna35 [415]3 years ago
3 0

Answer:

She'll have $661 in the account in 2022.

Step-by-step explanation:

Compound interest:

The amount of money earned in compound interest after t years is given by the following equation:

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

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

Rachael started off with $400. It earns 3% interest each year.

This means that A(0) = 400, r = 0.03

So

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

A(t) = 400(1+0.03)^t

A(t) = 400(1.03)^t

She wants to know how much money she'll have in the account in 2022.

17 years after 2005, which means that this is A(17). So

A(17) = 400(1.03)^{17} = 661

She'll have $661 in the account in 2022.

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