As a newborn in 1949, Hal’s grandparents gave him a gift of $1000 in a savings account with a simple interest rate of 4% per year. As Hal aged, his gift grew and he withdrew the money so he could transfer it to his sons. The growth of his account can be modeled by the equation y = 1000(1.04)^x where y is the value of the account and x is the number of years. Which of the following dollar amounts is reasonable given the bounds of the parameter?
$50,000
$359,000
$135,000
$2,550,000
There is no limit to the value of the account.
I can’t figure this out! Please help. Medal to best answer.

Question

As a newborn in 1949, Hal’s grandparents gave him a gift of $1000 in a savings account with a simple interest rate of 4% per year. As Hal aged, his gift grew and he withdrew the money so he could transfer it to his sons. The growth of his account can be modeled by the equation y = 1000(1.04)^x where y is the value of the account and x is the number of years. Which of the following dollar amounts is reasonable given the bounds of the parameter?
$50,000
$359,000
$135,000
$2,550,000
There is no limit to the value of the account.
I can’t figure this out! Please help. Medal to best answer.