SOLUTION: Nicole opened a savings account with an initial deposit of $5,000. Since then, she has never made any other deposits or withdrawals. Her savings account earns 4% interest compounde

Algebra ->  Testmodule -> SOLUTION: Nicole opened a savings account with an initial deposit of $5,000. Since then, she has never made any other deposits or withdrawals. Her savings account earns 4% interest compounde      Log On


   

Question 1117025: Nicole opened a savings account with an initial deposit of $5,000. Since then, she has never made any other deposits or withdrawals. Her savings account earns 4% interest compounded monthly.
Which equation gives the approximate amount, A(x), she has in her savings account as a function of x, the number of years since her initial deposit?


Answer by ikleyn(52788) About Me  (Show Source):
You can put this solution on YOUR website!
.
The equation (the expression, better to say) is


    A(x) = 5000%2A%28%281%2B0.04%2F12%29%5E12%29%5Ex = 5000*(((1+0.04/12)^12)^x),  or, which is the same,


    A(x) = 5000%2A1.040742%5Ex.