An account with a $250 balance accrues 2% annually. If no deposits or withdrawals are made, which graph can be used to determine approximately how many years will it take for the balance to be $282?
Answers
Answer:
In an account that with $250 balance that accrues 2% annually, with no deposits or withdrawals, it take 6 years and 6 months for the balance to be $282
Explanation:
If the balance accrues 2% annually, then that means every year, the amount increases by 100% + 2% = 102%
102% = 102/100 = 1.02
If we multiply the balance in the account with 102% or by 1.02 at the beginning of each year we will get the amount accrued at the end of the year
First year: $250 × 1.02 = $260.1
Second year: $260.1 × 1.02 = $265.302
Third year: $265.302 × 1.02 = $270.60804
We can use thes points to create a graph that will help us estimate at what year the amount will be $282.
Have a look at the graph given and the points plotted.
In the graph you will realize that it is 6.5 years that corresponds to $282
Therefore it takes 6 years and 6 months for $250 to accrue to the $282 dollars at 2% annually.
In an account that with $250 balance that accrues 2% annually, with no deposits or withdrawals, it take 6 years and 6 months for the balance to be $282