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 - Practice and Problem-Solving Exercises - Page 464: 15

Answer

After 5 years there will be about $5352.8$.

Work Step by Step

The formula is: $A=P(1+\frac{r}{n})^{nt}$ $P= 4000$ which is the start amount $R=0.06$ which is the rate $(6\%)$ $N=1$ because it is the number of times compounded per year. $T=5$ which is the time. Plug in: $A=4000(1+\frac{0.06}{1})^{5}$ $A=4000(1.06)^{5}$ $A=4000\times1.3382$ $A=5352.8$ After 5 years there will be about $5352.8$
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