Exponential Growth Problem

Question

On your 21st birthday, $4000 is invested for you at an annual yield of 8%. You do not withdraw any money from the account. What will be the balance in the account when you are 65?

Answer 1

The equation for exponential growth is y =A (r)^t where A is your initial amount (4000) r is your growth factor(1.08) and ‘this time which in this case is 44years (65-21)

so y = 4000(1.08)^44= 118,223.88