A bank account balance, b, for an account starting with s dollars, earning an annual interest rate, r, and left untouched for n years can be calculated as b = s (1 + r) ^n (an exponential growth formula). Find a bank account balance to the nearest dollar, if the account starts with $100, has an annual rate of 4%, and the money left in the account for 12 years.

Question

Stanley Holloway

8 April, 15:46

+3

Answers (1)

Know the Answer?

Korbin Bentley · Answer 1

B = 100 (1 + 0.04) ^12 = 100 (1.04) ^12 = 100 (1.601) = $160.10