Question

Roberta invested $600 $ 600 into a mutual fund that paid 4% 4 % interest each year compounded annually. Write an exponential function of the form =() y = a ( b ) x to describe the value of the mutual fund then use that function to determine the value of the mutual fund in 15 15 years.

Answer 1

600 X (1.04)^15

$1080.57

Explanation:

The formula for calculating future value:

FV = P (1 + r) n

FV = Future value

P = Present value

R = interest rate

N = number of years

600 X (1.04)^15 = $1080.57