Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Join our platform to connect with experts ready to provide accurate answers to your questions in various fields. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

$ 2000 principal earning 5% compounded annually after 3 years. Find the balance in the account using exponential function model.

Sagot :

We have a principal of $2000 (PV=2000) that is invested at an annual rate of 5% (r=0.05) compounded anually.

We have to find the value (FV) after 3 years (n=3).

We can write this as an exponential model as:

[tex]\begin{gathered} FV(n)=PV\cdot(1+r)^n \\ FV(n)=2000\cdot1.05^n \end{gathered}[/tex]

Then, for n=3, we will have:

[tex]\begin{gathered} FV(3)=2000\cdot1.05^3 \\ FV(3)=2000\cdot1.157625 \\ FV(3)=2315.25 \end{gathered}[/tex]

Answer: the balance after 3 years is $2315.25.

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.