Question

Mary wants to have $8500 to travel to South America when she is 21. She currently has $6439 in a savings account earning 4% annual compound interest.

will she have enough for the trip when she is 21?

what would the graph look like? (describe not graph!!)

Answer 1

This is how i think you do this

Explanation:

6439e^.04x8= 8867.32, or

e^.04= 1.0408 = 6439 x (1.0408^8) = 8,867.33.

the first one would be if she is receiving multiple payments ove the year, and the second one is just the "4% commended annually per year". its been a minute since ive actually had to do this, but that seems right to me. so she will have enough.