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Exponential Growth and Decay : Growth Formula : y = a(1 + r)', Decay Fórmula: y = a(1 – r) 1. Suppose you deposited $5,500.00 at a bank with an annual interest rate of 5%. What would be the amount in the bank after 20 years?

User Ksming
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in this case we have that it is growth formula, so we have that r= 0.05 and a =5500. Therefore the formula is


y=5500\cdot(1.05)^t

we only need to replace t by 20 and calculate


y=5500\cdot1.05^(20)=14593.13

so after 20 years we hace $14593.13 in our bank account

User Nathan Beck
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