Answer:
The value of the investment after 20 years is $43,408.30
Explanation:
In this question, we are asked to use an exponential function to calculate the future value of an investment that has a yield rate of 12% per year.
Mathematically, the exponential function can be modeled as follows;
FV = I( 1 + r)^t
where Fv is the future value we are trying to calculate
I is the initial amount invested which is $4,500
r is the increment per year which is 12% and this is same as 12/100 = 0.12
this the number of years we expect the investment to run which is 20.
Plugging these values, we have;
Fv = 4500( 1 + 0.12)^20
Fv = 4500(1.12)^20
Fv = $43,408.32
This is same as $43,408.30 to the nearest cent