Question in the description

Question

You decide to invest $10,000 in an account where the interest compounds annually. Create an exponential function to represent how much money you will have after 20 years if the money grows at a rate of 7.5 percent.

Answer 1

Principal Amount (P) = $10,000

Interest Rate (I) = 7.5% (0.075)

Time Period (N) = 20 years

Future Value (FV) = Principal(P) * (1+Interest (I))^(N)

10,000*(1+0.075)^20 = $ 42,478.51 (this is what your initial investment will grow into at the end of 20 years)