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Vanessa deposits $12,000 in a savings account with an annual interest rate of 3.5%. Write the function and determine what her balance will be after 5 years

Vanessa deposits $12,000 in a savings account with an annual interest rate of 3.5%. Write-example-1
User Tibox
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Answer:

The function for the balance in a savings account over time, given an initial deposit (P) and an annual interest rate (r), is:

A = P(1 + r)^t

Where A is the balance, P is the initial deposit, r is the annual interest rate (expressed as a decimal), and t is the number of years.

In this case, Vanessa has deposited $12,000, and the annual interest rate is 3.5% or 0.035 as a decimal, so the function is:

A = 12000(1 + 0.035)^t

To find out what her balance will be after 5 years, we can substitute t = 5 into the function:

A = 12000(1 + 0.035)^5

A = 12000(1.035)^5

A = 12000*1.2094

A = $14,512.8

Vanessa's balance will be $14,512.8 after 5 years.

Explanation:

User Matthewfx
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