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Mila [183]
3 years ago
7

You invest $2,500 in an account that grows 5% each year. what will be your investment amount after 6 years?

Mathematics
1 answer:
lesantik [10]3 years ago
4 0

Answer:  b. $3,374.65

Step-by-step explanation:

The exponential equation of growth (continuously) is given by :-

y=Ae^{rx}, where A is the initial amount, r is the rate of growth ( in decimal) and x is the time period.

Given : You invest $2,500 in an account that grows 5% each year.

i.e.  A= $2,500  and r= 5%=0.05

Then, the equation model this situation will be :-

y=2500e^{0.05x}=2500(1.05)^x

Now, At x= 6

y=2500e^{0.05\times6}\\\\\Rightarrow\ y=2500e^{0.3}=3374.64701894\approx3374.65

Hence, the investment amount after 6 years will be $3,374.65.

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