Question

3. Susan invested $10,000 in an account that earned 3% interest, compounded monthly.
a. Write an exponential growth/decay formula to model the situation.
b. What is the value of this account after 5 years? Express your answer rounded to the nearest cent.

Answer 1

A) total = 10,000 *(1+0.03/12)^(12*t)

B) t = 5 years

10,000 *(1+0.03/12)^(12*5 ) = $11,616.17