Question

You invest $1,000 in a certificate of deposit (CD) that earns 5% interest every year. If the function that represents the growth of your money is $f(x)=1.05x$, in what year will your CD be worth at least $1,300?
Year 6
Year 4
Year 7
Year 5

Answer 1

The year my money would be at least $1300 is year 6.

In what year would the money be at least $1300?

The formula that can be used to determine the number of years that $100 would have a value of $1300 is:

Number of years =  In(FV / PV) / r

Where:

• FV = future value
• PV = present value
• r = interest rate

In(1300 / 1000) / 0.05

0.2623642645 / 0.05

= 5.2 years

Future value in 5 years = $1000(1.05^5) = $1276.28

Future value in 6 years = $1000(1.05^6) = $1340.10

To learn more about future value, please check: brainly.com/question/21841217