Question

Two people are placing a principal investment of $9,250 in separate savings accounts with 6.12% annual interest. account a uses simple interest, while account b uses annually compounded interest. which account can be modeled exponentially, and what is the balance after 11 years? account a; the balance after 11 years is $17,779.17 account a; the balance after 11 years is $15,477.10 account b; the balance after 11 years is $17,779.17 account b; the balance after 11 years is $15,477.10

Answer 1

Account B, which uses annually compounded interest, can be modeled exponentially and has a balance of $17,779.17 after 11 years.

Step-by-step explanation:

The account that can be modeled exponentially is Account B, which uses annually compounded interest. With an annual interest rate of 6.12%, the formula for the balance in Account B after 11 years is P(1 + r)^t, where P is the principal amount, r is the annual interest rate (as a decimal), and t is the time in years. For Account B with a principal of $9,250, the balance after 11 years can be calculated as $9,250 × (1 + 0.0612)^11.

After calculating the compounded interest, the balance in Account B after 11 years is $17,779.17.

In this case, Account B can be modeled exponentially because it uses annually compounded interest. To calculate the balance after 11 years, we will use the formula for compound interest:

Balance = Principal x (1 + Rate/100)^Time

For Account B, the principal investment is $9,250, the rate is 6.12%, and the time is 11 years. Plugging in these values into the formula:

Balance = $9,250 x (1 + 6.12/100)^11

After evalu