Derrick’s parents are finalizing a budget for his college expenses. His first year of college will cost $8,000, and his expenses
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Hello!
To find how much money total will be in the account after four years, you need to use the function, , as seen above. In this function, a is the starting value, r is the interest rate, and t is the amount of time (in years).
Before substituting values into the function, we need to convert 3% into a decimal. Remember that all percentages are out of 100, so we divide 3 by 100 and remove the percentage sign, or move the decimal two places to the left.
3/100 = 0.03 | 0.03 is the interest rate.
With all the necessary values, we can find the total amount in the account. In this case, a = 1200, r = 0.03, and t = 4.
y = 1350.610572, which can be rounded to 1350.61 dollars.
Therefore, after 4 years, the total amount in the account will be about 1350.61 dollars.