Question

a woman invest a specific amount of money which earns compounded interest at a particular rate. this situation is represented by the equation : A=1000(1.023) ^(2*T) how much will she have in her account at 10 years?

Answer 1

We are given the following formula for interest compound:

`A=1000(1.023)^(2t)`

Where "t" is time. We are asked to determine the value of "A" when t = 10. We replace the value of 10 in the formula, like this:

`A=1000(1.023)^(2(10))`

Solving the operations

`A=1000(1.023)^(20)`
`A=1000(1.58)=1575.8`

Therefore, in 10 years she will have $1575.8