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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