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Exponential Growth and Decay : Growth Formula : y = a(1 + r)', Decay Fórmula: y = a(1 – r) 1. Suppose you deposited $5,500.00 at a bank with an annual interest rate of 5%. What would be the amount in the bank after 20 years?

Respuesta :

in this case we have that it is growth formula, so we have that r= 0.05 and a =5500. Therefore the formula is

[tex]y=5500\cdot(1.05)^t[/tex]

we only need to replace t by 20 and calculate

[tex]y=5500\cdot1.05^{20}=14593.13[/tex]

so after 20 years we hace $14593.13 in our bank account

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