Question

Sophie invested 5,000 into an account that will increase in value by 2.3% each year. Write a function to model this situation, then find the value of the investment after 15 years

Answer 1

$6725

Explanation:

Given data

Princiapal= $5000

Rate=2.3%

Time= 15years

The function that will model this situation is given as

A=P(1+rt)

The above function is a simple interest function

Substitute our data we can find the amount A

A=5000(1+0.023*15)

A= 5000(1+0.345)

A=5000(1.345)

A=5000*1.345

A=$6725

Hence the value of the investment after 15 years is $6725