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In 2013 Staci invested $15,500 in a savings account for her newborn son. The account pays 4.4% interest each year. Determine the accrued value of the account in the year 2031, when her son will go to college. Round your answer the nearest cent.

In 2013 Staci invested 15500 in a savings account for her newborn son The account pays 44 interest each year Determine the accrued value of the account in the y class=

Respuesta :

In this problem

we have an exponential growth function of the form

[tex]y=a(1+r)^x[/tex]

where

y is the total amount in the saving account

x is the number of years since the year 2013

r is the rate

a is the initial value

where

a=$15,500

r=4.4%=4.4/100=0.044

year 2031 -----> x=2031-2013=18 years

substitute in the equation

[tex]\begin{gathered} y=15,500(1+0.044)^{(18)} \\ y=\$33,646.56 \end{gathered}[/tex]