Question

A person invests $8000 in an account at 3% compounded annually. The value V (in $) of the account after t years is described by V=5000(1.03)^t. Find the value of the account after 6 years.

Answer 1

The expression that represent the amount of money in t years then is:

`V=5000(1.03)^t`

So in 6 years we replace t = 6 so:

`\begin{gathered} V=5000(1.03)^6 \\ V=5970.26 \end{gathered}`