If you have a savings account, contact your bank and find out the interest rate on that account. (If you don’t have your own account, contact a local bank to ask what the interest rate would be if you set up a savings account today.)

a. State the interest rate the bank quoted.
b. Write an exponential growth equation that models the yearly growth if you put $625 in the account and left it there for $\footnotesize{x}$ years.
c. What will be the value of the account in 25 years?
d. Would you rather have your $625 deposited in your bank at the current interest rate for 6 years, or deposit $625 into a money market account with a 5% rate for 1 year? Explain your choice.

Question

If you have a savings account, contact your bank and find out the interest rate on that account. (If you don’t have your own account, contact a local bank to ask what the interest rate would be if you set up a savings account today.)

a. State the interest rate the bank quoted.
b. Write an exponential growth equation that models the yearly growth if you put $625 in the account and left it there for $\footnotesize{x}$ years.
c. What will be the value of the account in 25 years?
d. Would you rather have your $625 deposited in your bank at the current interest rate for 6 years, or deposit $625 into a money market account with a 5% rate for 1 year? Explain your choice.