Question

Lauren invested $510 in an account in the year 2010, and the value has been growing exponentially at a constant rate. The value of the account reached $620 in the year 2014. Determine the value of the account, to the nearest dollar, in the year 2024.

Answer 1

To find the value of the account in the year 2024, use the compound interest formula.

The value of the account is approximately $1046 (nearest dollar).

To find the value of the account in the year 2024, we need to determine the growth rate of the account first.

We can use the compound interest formula to calculate this.

Let's assume that the growth rate is 'r'.

From the given information, we know that the initial investment in 2010 was $510 and it grew to $620 by 2014.

Using the compound interest formula, we can set up the following equation:

$510 * (1 + r)^4 = $620

Solving for 'r', we find that r = 0.084, or 8.4%.

Now, we can use this growth rate to find the value of the account in 2024:

$510 * (1 + 0.084)^14 ≈ $1046 (nearest dollar)

Answer 2

Explanation:

the year 2010, and the value has been growing exponentially at a constant rate. The value of the account reached $620 in the year 2014. Determine the value of the account, to the nearest dollar, in the year 2024.