Problema Solution
Gracie deposits $1000 in a mutual fund earning 9.5% annual interest, compounded monthly. Write an exponential function that models this situation when, y, is the amount of Gracie's investment and ,x, is time in years. I have this so far:
A = 1000 (1 + .095/12)12^x
How do I solve to find 5 years and 10 years?
thanks
Answer provided by our tutors
A = 1000 (1 + .095/12)^(12*x)
for x = 5 years we have
A = 1000 (1 + .095/12)^(12*5)
A = $1,605.01
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for x = 10 years we have
A = 1000 (1 + .095/12)^(12*10)
A = $2,576.06
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