Question

An initial investment of $1500 is deposited into your bank account. Your investment appreciates at a rate of 11% per year. Part A: Determine an exponential equation based on the given information. Part B: Determine how many years (to the nearest tenth) it would take for the invest to be worth $4500.

Answer 1

Explanation:

Compounding formula :

FV = PV (1+i)^ n i = decimal interest per period n = periods

FV = future value PV = present value

A) FV = 1500 ( 1 + .11)^ n

B) 4500 = 1500 ( 1.11) ^n <=====solve for 'n'