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%. …

Question

asked Nov 3, 2023 153k views

1 Answer

Nathan Beck · Answer 1 · 2023-11-07T13:12:12+0000

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