SOLUTION: Arianna is investing 6,000 to get ready for college expenses. her bank offers an annual growth rate of 5.8% and she plans to do this for 4 years. How much will she save after 4 yea

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: Arianna is investing 6,000 to get ready for college expenses. her bank offers an annual growth rate of 5.8% and she plans to do this for 4 years. How much will she save after 4 yea      Log On


   

Question 1176618: Arianna is investing 6,000 to get ready for college expenses. her bank offers an annual growth rate of 5.8% and she plans to do this for 4 years. How much will she save after 4 years

What is the exponential function to model the situation?
How much will she have saved after 4 years.
Found 2 solutions by ewatrrr, ikleyn:
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi
 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29
A = Accumulated Amount
P= principal = $6000
r= annual rate = .058
n= periods per year = 1
t= years = 4
A%28t%29+=6000%281.058%29%5E%284%29 = $7517.85 rounded to the nearest cent.


Wish You the Best in your Studies.

Answer by ikleyn(52830) About Me  (Show Source):
You can put this solution on YOUR website!
.

The exponential function for the Future Value is (assuming compound account)


    FV = 6000%2A%281%2B0.058%29%5Et = 6000%2A1.058%5Et


where "t" is the integer number of full years.


In 4 years, the value at the account will be 


    6000%2A1.058%5E4 = 7517.86 dollars.    ANSWER

Solved.

------------------

To see many other similar solved problems on compounded interest accounts,  look into the lesson
    - Compounded interest percentage problems
in this site.