Question

14. You deposit $500 in a savings account that

carns 7% interest compouncted anually.
A.) write a function that represents the balance
after t years
B.) What is the balance after 2 years?

Answer 1

A) A(t) = 500e^(0.07)(t)

B) 575.137

Explanation:

Answer 2

A) Balance = 500(1.07)^t
B) Balance after 2 years = 500(1.07)^2 = $572.45