Write an exponential equation for $20,000 invested in an account that earns 5% interest per year for 7 years.
The general formula for exponential growth is y=a(1+r)t.
In this situation, a = 20,000, r = 0.05, and t = 7.
y=20,000(1+0.05)7y=20,000(1.05)7y=28,142.01
Rounded to the nearest dollar, 28,142.01 is 28,142.
The account balance would be $28,142 after 7 years.