Algebra 1: Common Core (15th Edition)

Published by Prentice Hall
ISBN 10: 0133281140
ISBN 13: 978-0-13328-114-9

Chapter 7 - Exponents and Exponential Functions - 7-7 Exponential Growth and Decay - Got It? - Page 462: 2

Answer

$\$4489.01$.

Work Step by Step

$A=P(1+\frac{r}{n})^{nt}$ The given values are Principal $P=2000$ Rate of interest $r=4.5\%=0.045$ Number of periods $n=12$ Time $t=18\;yr$ Substitute all values into the formula. $\Rightarrow A=2000(1+\frac{0.045}{12})^{12\cdot 18}$ Simplify. $\Rightarrow A=4489.01$ Hence, the account balance after $18\;yr$ is $\$4489.01$.
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