Respuesta :
Answer:
The exponential equation is A = 600(1.04)^15
The value of the mutual fund after 15 years is $1,081
Step-by-step explanation:
The value of the mutual fund after the number of years can be represented using the compound interest equation below;
A = P(1 + r/n)^nt
Where A is the value of the mutual fund after 15 years, P is the initial amount invested which is $600, r is the interest rate which is 4% or 0.04(4% = 4/100 = 0.04), n is the number of times we are compounding per year(which is 1 since it is a one time payment per year) and t is the number of years which is 15
Let's plug these values, we have;
A = 600(1 + 0.04/1)^15
A = 600(1.04)^15
A = $1,081 approximately
Answer:
y = 600*(1.04)^t
for t = 15: y = $1080.57
Step-by-step explanation:
The exponencial function y = a(b)x have the following variables:
a: inicial value
b: rate of interest plus one
x: time invested
So, if the inicial value invested is 600, the rate is 4% and the time is 15 years, we have that the equation is:
y = 600*(1+0.04)^t = 600*(1.04)^t
And for time t = 15 years, we have that:
y = 600*(1.04)^15 = $1080.57
