Question

6700 dollars is placed in an account with an annual interest rate of 8%. How much will be in the account after 24 years, to the nearest cent?

Answer 1

Answer:

This is a simple interest problem.

According to the simple interest formula, E = P * I * t

In which E are the earnings, P is the principal (the initial amount of money), I is the interest rate (yearly, as a decimal) and t is the time.

After t years, the total amount of money is

T = E + P

In this problem, we have that:

P = $6700, r = 0.08 (i.e. I = $\frac{8}{100}$ ), t = 24

So E = P * I *t = 6700 * 0.08 * 24

= 12864

Now we have to add the money from the initial year since that is not included. The value we just calculated is the one excluding the first year.

So, T = 6700 + 12864 = $19564

Hence you'll have an amount of $19,564 at the end of 24 years.

Please mark this as the Brainliest

Answer 2

Answer: 42485.91

Step-by-step explanation: Exponential Functions:

y=ab^x

y=ab

x

a=\text{starting value = }6700

a=starting value = 6700

r=\text{rate = }8\% = 0.08

r=rate = 8%=0.08

\text{Exponential Growth:}

Exponential Growth:

b=1+r=1+0.08=1.08

b=1+r=1+0.08=1.08

\text{Write Exponential Function:}

Write Exponential Function:

y=6700(1.08)^x

y=6700(1.08)

x

Put it all together

\text{Plug in time for x:}

Plug in time for x:

y=6700(1.08)^{24}

y=6700(1.08)

24

y= 42485.9109395

y=42485.9109395

Evaluate

y\approx 42485.91

y≈42485.91

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