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12 July, 04:00

Suppose you invest $500 in a savings account that pays 3.5% annual interest.

a. Is this exponential growth or decay?

b. How much will be in the account after 5 years?

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  1. 12 July, 04:21
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    That would be exponential growth.

    Total = principal * (1+rate) ^time

    Total = 500 * (1+.035) ^5

    Total = 593.84
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