Question

Samantha puts an initial $500 into a savings account. The account has a 4% annual compound interest rate. What is the function that best represents Samantha's account and how much does she have in savings after 5 years? Round your answer to the nearest dollar.Hint: Use the formula, f(x) = P(1 + r)x.

Answer 1

To answer you just need to plug in the values.
P = $500 and r = 4% or .04

`f(x)=500(1.04) ^(x)`

Then when x (years) = 5 you will get
`f(5)=500(1.04)^5`
This is approximately $608