Question

Eli invested $330 in an account in the year 1999, and the value has been growing exponentially at a constant rate. The value of the account reached $590 in the year 2007. Determine the value of the account, to the nearest dollar, in the year 2009.

Answer 1

To find the value of the account in the year 2009, we can use the exponential growth formula. Given the initial and final values, we can calculate the growth rate and then find the value in 2009.

Step-by-step explanation:

To find the value of the account in the year 2009, we can use exponential growth formula. Given that the value of the account in 1999 was $330 and it grew to $590 in 2007, we can determine the growth rate using the formula V = A * (1 + r)^n, where V is the final value, A is the initial value, r is the growth rate, and n is the number of years.

Using the formula, we have $590 = $330 * (1 + r)^8. Solving for r, we get (1 + r) = (590 / 330)^(1 / 8).

Now, we can find the value of the account in 2009 by plugging in the values into the growth formula. We have V = $330 * (1 + r)^10. Substituting the value of r we found, we can calculate the value of the account in 2009.

Learn more about Exponential growth