Algebra 2 Common Core

Published by Prentice Hall
ISBN 10: 0133186024
ISBN 13: 978-0-13318-602-4

Chapter 7 - Exponential and Logarithmic Functions - Mid-Chapter Quiz - Page 461: 7

Answer

$\$672.97$

Work Step by Step

Recall: Compound Interest Formula The future value $A$ of an investmet $P$ after $x$ years earning $r$ percent year annually is given by the formula: $$A=P(1+r)^x$$ Thus, the value of an investment of $\$600$ that earns $3.9\%$ interest per year for $3$ years willl be: \begin{align*} A& = 600\left(1+3.9\%\right)^3\\ A& = 600\left(1+0.039\right)^3\\ A& = 600\left(1.039\right)^3\\ A &\approx 672.97 \end{align*}
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