Jenna bought a savings certificate that earned 2% simple interest per year. She earned a total of $100 in interest over 4 years.
1 answer:
Answer: Below
Step-by-step explanation:
An interesting part of this problem is that it derives off of Exponential growth formulas.
So by plugging in the values in the Exponential growth:
What's important is we know the increasing factor, so:
So now we know 8.24% of something is equal to 100. We can use this to find x, which is our initial value.
x * 0.0824 = 100
x = 100/0.0824
x = 1213.59
The answer is approximately 1213.59
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After 7 years fund balance will be $2152336.05 if the philanthropist pledges to donate 10% of a fund each year.
<h3>What is an exponential function?</h3>It is defined as the function that rapidly increases and the value of the exponential function is always a positive. It denotes with exponent.
where a is a constant and a>1
We have:
A philanthropist pledges to donate 10% of a fund each year.
We can find the amount left after 7 years as follows:
A = 450000(1 - 0.1)⁷
10% of a fund each year.
Rate r = 10% = 0.1
A = 450000(0.9)⁷
A = $2152336.05
Thus, after 7 years fund balance will be $2152336.05 if the philanthropist pledges to donate 10% of a fund each year.
Learn more about the exponential function here:
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