Question

Solve each exponential growth/decay word problem

A savings account balance is compounded
annually. If the interest rate is 2% per
year and the current balance is $1,557.00,
what will the balance be 5 years from
now?

Answer 1

$1.720.34

Explanation:

to do this problem we can use the exponential growth formula A=p(1+r)^t

substituting our values we get

A = 1,557.00(1+0.02)^5

after solving the equation for A we get that

A after 5 years will be $1,720.34