Ben deposited $20,000 in a retirement fund that earns 5% interest compounded annually.

What will be the balance in Ben's account after 7 years? Round to the nearest dollar.

shaniab29544 Dec 18, 2014

#2**+15 **

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.

shaniab29544 Dec 18, 2014

#1**+10 **

FV=20000*(1+0.05)^7

$${\mathtt{20\,000}}{\mathtt{\,\times\,}}{\left({\mathtt{1}}{\mathtt{\,\small\textbf+\,}}{\mathtt{0.05}}\right)}^{{\mathtt{7}}} = {\mathtt{28\,142.008\: \!453\: \!125}}$$

.Melody Dec 18, 2014

#2**+15 **

Best Answer

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.

shaniab29544 Dec 18, 2014