Question

A skateboarder gets paid 10,000 fo4 winning a competition he puts it in a savings account that increases at 7% per year.How much money will he have after 8 years

Answer 1

Answer: $17182.

This is an example of an exponential growth function, which looks like f(x)=a(1+r)^x, where r is the growth rate, a is the initial value, and x is the time. 10000 is the initial value, 7% is the growth rate, and 8 years is the time. 7% can become 0.07. f(x)=10000(1+0.07)^8. f(x)=10000(1.07)^8. First simplify the exponent. f(x)=10000(1.71818618). f(x)≈17182.

Answer 2

`\$17181.86`

Explanation:

`A=P(1+r)^t\\A=10000(1+0.07)^8\\A=10000(1.07)^8\\A\approx\$17181.86`