If c dollars are deposited in an account paying r percent annual interest, the amount after x years is a=c(1+r)^x. Approximate the amount in the account after x years when c=$200, r=23%, and x=15 years..any one???

Question

If c dollars are deposited in an account paying r percent annual interest, the amount after x years is a=c(1+r)^x.  Approximate the amount in the account after x years when c=$200, r=23%, and x=15 years..any one???

gw2011 · Answer

Substitute into the formula:

a=200(1+0.23)^15
a=200(1.23)^15
a=200(22.31)  When rounding (1.23)^15 to two decimal places
a=$4462  Approximately

               OR

a=200(22.314)   When rounding (1.23)^15 to three decimal places
a=$4463  Approximately