Question

Suppose you deposit ​$2,000 in a savings account that pays interest at an annual rate of 5​%. If no money is added or withdrawn from the​ account, answer the following questions.

a. How much will be in the account after 3 ​years?
b. How much will be in the account after 18 ​years?
c. How many years will it take for the account to contain ​$2,500​?
d. How many years will it take for the account to contain ​$3,000​?

Answer 1

Below

Explanation:

formula: ab^x

a= starting amount b=exponential increase x=years

r= rate

a= 2000

r= 5%= 0.05

b=1+r= 1+0.05= 1.05

3 years:

2000(1.05)^3= 2315.25

18 years:

2000(1.05)^18= 4813.23846738 = 4813.24

How many years will it take for the account to contain ​$2,500​?

2500=2000(1.05)^x

2500-2000= 1.05^x

4.57353557= x

4.6= x

How many years will it take for the account to contain ​$3,000​?

3000= 2000(1.05)^x

3000-2000=1.05^x

1000=1.05^x

x= 8.31038622

x= 8.3