3. Susan invested $10,000 in an account that earned 3% interest, compounded monthly.

a. Write an exponential growth/decay formula to model the situation.

b. What is the value of this account after 5 years? Express your answer rounded to the nearest cent.

Question

29 January, 19:05

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Answers (1)

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Joyce Kim · Answer 1

A) total = 10,000 * (1+0.03/12) ^ (12*t)

B) t = 5 years

10,000 * (1+0.03/12) ^ (12*5) = $11,616.17

3. Susan invested $10,000 in an account that earned 3% interest, compounded monthly.a. Write an exponential growth/decay formula to model the situation.b. What is the value of this account after 5 years? Express your answer rounded to the nearest cent.