Question

Finding a final amount in a word problem on exponential growth. A principal of $1900 is invested at 3.5% interest, compounded annually. Use the calculator provided and round your answer to the nearest whole number.

a. $1970
b. $1954
c. $1943
d. $1987

Answer 1

To find the final amount in a word problem on exponential growth, we can use the formula for compound interest. In this case, the principal amount is $1900, the interest rate is 3.5%, and the interest is compounded annually. The final amount is approximately $1962.

Step-by-step explanation:

To find the final amount in a word problem on exponential growth, we can use the formula for compound interest. In this case, the principal amount is $1900, the interest rate is 3.5%, and the interest is compounded annually.

The formula for compound interest is: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.

Plugging in the values, we have: A = 1900(1 + 0.035/1)^(1*1) = 1900(1.035) = $1961.5

Rounding the answer to the nearest whole number, the final amount is approximately $1962.