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kgcrivello

  • 4 years ago

A bank account earns 5% interest each year. No money has been withdrawn or deposited sense the account was opened. Today, 7 years after the account was opened, the balance is $1,336.75. First question. What would the equation be to calculate the balance in the account after x amount of years from now? Second question. What was the initial deposit? Thank you!

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  1. TransendentialPI
    • 4 years ago
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    B=P(1+0.05)^x assuming annual compounding we to substitute in what we know:\[1336.75=P(1.05)^7\] divide 1336.75 by whatever 1.05^7 is OK?

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