Question

the original value of an investment is $1,800. if the value has increased by 7% each year, write an exponential to model the situation. then, find the value of the investment after 15 years

Answer 1

For this case we have an equation of the form:
y = A (b) ^ t
Where,
A: initial amount
b: growth rate
t: time
Substituting values we have:
y = 1800 * (1.07) ^ t
For 15 years we have:
y = 1800 * (1.07) ^ 15
y = 4966.256773 $
Answer:
An exponential to model of the situation is:
y = 1800 * (1.07) ^ t
the value of the investment after 15 years is:
y = 4966.256773 $