Question

An account with $250 balance accrues 2% annually. If no deposits or withdrawals are made, which graphs can be used to determine approximately how many years will it take for the balance to be $282?

Answer 1

Answer:

Here we have an exponential growth, where the rate of growth is 2% or 1.02, and the initial value is $250.

Then we can write this as:

M(y) = $250*(1.02)^y

where y is the number of years and M is the amount of money.

the graph of this equation will help you to find the number of years needed to have $282 in the account, but we can solve it also only with math.

M(y) = $282 = $250*(1.02)^y

         $282/$250 = 1.02^y

          1.128 = 1.02^y

          ln(1.128)/ln(1.02) = y = 6.08

So the graph is correct.