Question: One very important exponential equation is thecompound-interest formula: ..where A is the ending amount, P is the beginning amount (or principal),

One very important exponential equation is thecompound-interest formula:

..where "A" is the ending amount, "P" is the beginning amount (or "principal"), "r" is the interest rate (expressed as a decimal), "n" is the number of compoundings a year, and "t" is the total number of years.

  • When Seth was born, his parents invested $10,000 into an account that has averaged 8% annual interest. Seth will be 65 and ready to retire on his birthday tomorrow. He has never touched any money in that investment. How much will that investment be worth on his birthday tomorrow? --
  • Leslie wants to earn $1500 in interest in 5.2 years from an investment of $11000 in an account that is compounded quarterly. What interest rate will she need in order to achieve her goal?

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