Question

Grace deposits $1000 in a mutual fund earning 9.5% annual interest, compounded monthly. how do i write an exponential function that models the situation where y= the amount of graces investment and x is time in years? help will mail you a cookie

Answer 1

\[A=P(1+\frac{r}{n})^{nt}\]
where
A = amount after t years
P = principal
r = annual interest rate as a decimal
n = number of times that interest is compounded in a year
t = time in years.
Just plug in the values.

Answer 2

Thanks

Answer 3

You're welcome :)