Problem 698

The value of a particular investment follows a pattern of exponential growth. You invested money in a money market account. The value of your investment t years after your initial investment is given by the exponential growth model   A = 10,800 e0.125t . How much will be in the account after 12 years? Round the answer to the nearest dollar.

 

Solution:-

A = pe^{rt}

t = 12 years

A = 10800e^{0.125*12}

A = 48402

 

Leave a Reply