Question

Refer to the previous question.Approximately how much money would be in your account after the third year?(Assume that you do not make any additional deposits or withdrawals.)

Answer 1

The amount of money in the account after t years is given by the function

`f(t)=1000\cdot(1.12)^t`

We want to evaluate how much money would be in your account after the third year, to do it we must put t = 3 in our function, then

`\begin{gathered} f(t)=1000\cdot(1.12)^t \\ \\ f(3)=1000\cdot(1.12)^3 \\ \\ f(3)=1000\cdot1.404928 \\ \\ f(3)=1404.928 \end{gathered}`

And we can approximate to

`\$1404.93`