SOLUTION: Find the amount accumulated to the nearest cent on $700 compounded annually for 3 years at 9 % Formula: A=p(1+R)

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Question 728636: Find the amount accumulated to the nearest cent on $700 compounded annually for 3 years at 9 %

Formula: A=p(1+R)
Answer by ohtheirony(35) About Me  (Show Source):
You can put this solution on YOUR website!
The equation for exponential growth is A=a%281%2Bx%29%5Et.


a=the original starting rate (the compound: $700)
x=percent the rate is increasing annually (depreciation of 9%)
t=amount of time past while the amount is increasing (3 years)


So, your equation would be...
A=a%281%2Bx%29%5Et
A=700(1+.09)^3 (^3 is (1+.09) to the third exponent)
A=700(1.09)^3
A=700(1.295029)
A=906.5203


So, your answer would be $906.52.


For more on exponential growth and also exponential decay, try this link:
http://www.regentsprep.org/Regents/math/ALGEBRA/AE7/ExpDecayL.htm