Question

1. Gwen deposits $7,000 in a savings account with an annual interest rate of 2.5%. What function

represents the value of her account after x years? What will her balance be after 9 years?

Answer 1

Results are below.

Explanation:

Giving the following information:

Initial investment (PV)= $7,000

Interest rate (i)= 2.5%

To calculate the future value after x years, we need to use the following formula:

FV= PV*(1 + i)^x

Now, for 9 years:

x= 9

FV= 7,000*(1.025^9)

FV=$8,742.04