The original value of an investment is $1,800. if the value has increased by 7% each year, write an exponential to model the situation. then, find the value of the investment after 15 years

For this case we have an equation of the form:

y = A (b) ^ t

Where,

A: initial amount

b: growth rate

t: time

Substituting values we have:

y = 1800 * (1.07) ^ t

For 15 years we have:

y = 1800 * (1.07) ^ 15

y = 4966.256773 $

Answer:

An exponential to model of the situation is:

y = 1800 * (1.07) ^ t

the value of the investment after 15 years is:

y = 4966.256773 $