Question

What is the final balance for the investment? $1500 for 3 years at 10% compounded annually

A.
$1875.00

B.
$1625.00

C.
$1996.50

D.
$2110.50

Answer 1

Remember the exponential function
\(f(x) = a(b)^t\)

a = principal amount
b = rate
t = time

Answer 2

Starting (principal) amount is what?

Answer 3

1500?

Answer 4

Correct. The rate?

Answer 5

3

Answer 6

Nope. That's the time actually because it's 3 years.

Answer 7

oh so .010?

Answer 8

So for the rate, what actually happens is that you add 1 to the decimal form of the percent (10%).

Answer 9

1.10?

Answer 10

im confused and have to go

Answer 11

Yes that's correct for the rate. And the time you said already was 3 years.

Answer 12

So substitute the corresponding values into their respective places in the formula
\[f(n) = 1500(1.1)^3\]

Evaluate that.

Answer 13

umm lets see

Answer 14

=C

Answer 15

Correct!

Answer 16

ty so much ill be back on in a little bit